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kulitam

DCF Approximation

kulitam  
Fundamental Analysis Value Trend Analysis DCF valuation
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fundamental value trendanalysis dcf valuation
The indicator for calculating and visualizing the Discounted Cash Flow (DCF) for a selected stock.

It uses the Weighted Average Cost of Capital (WACC) with a margin of safety and the Free Cash Flow (FCF) calculation for cash flow analysis. The DCF is calculated by summing the discounted annual FCFs over a 10-year period.

The chart color depends on the value of the current price percentage - it turns red when the market price is over valuation, yellow around a fair value, and green for the price under valuation.

This is an early version of the indicator, so I would appreciate your suggestions for improving the code and formulas.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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