reorder code lines

dbogatic · Sep 22, 2021 · 5e19ea5 · 5e19ea5
1 parent 7866c34
commit 5e19ea5
Showing 1 changed file with 17 additions and 16 deletions.
diff --git a/intrinsic_value.ipynb b/intrinsic_value.ipynb
@@ -5734,7 +5734,7 @@
   {
    "cell_type": "markdown",
    "source": [
-    "# FMP Intrinsic Value - [FMP API Calculation](https://financialmodelingprep.com/developer/docs/dcf-formula) - Value as of 09-21-2021"
+    "# FMP Intrinsic Value - [FMP API Calculation](https://financialmodelingprep.com/developer/docs/dcf-formula) - Value as of 09-22-2021"
    ],
    "metadata": {}
   },
@@ -5846,11 +5846,11 @@
     "\n",
     " * Free Cash Flow (FCF) = Operating cash flow - Total CapEx (more conservative because it includes both growth and maintenance CapEx)\n",
     "\n",
-    " * FCF Growth Rate 10 years (g) - 10-year averageg or make a judgement call what is realistic growth rate to continue into the future\n",
+    " * FCF Growth Rate 10 years (g) - 10-year average or make a judgement call what is a realistic growth rate to continue into the future\n",
     " \n",
     " * Personal Required Rate of Return (r) - use S&P historical avg return or specify your own requred rate\n",
     "\n",
-    " * Long Term Growth Rate (lgr) - discretionary rate for earnings to grow indefinitely (recommended 2%-3% to avoid overly optimistic valuation)\n",
+    " * Long Term Growth Rate (lgr) - discretionary rate for earnings to grow indefinitely (recommended 2%-3% to avoid overly optimistic valuation) past ten years\n",
     "\n",
     "\n",
     "* DFCFn = Discounted Free Cash Flow for year n\n",
@@ -5879,26 +5879,27 @@
   },
   {
    "cell_type": "code",
-   "execution_count": 22,
+   "execution_count": 29,
    "source": [
     "# Specify variables for DCF model\n",
     "\n",
     "n = 10 # period ten years\n",
     "r = 0.10 # discretionary factor based on the riskiness of investment\n",
     "g = growth['freeCashFlowGrowth'].mean() # growth of earnings first ten years (average FCF)\n",
-    "BYFCF = cash['freeCashFlow'].loc['2020'] # base year FCF\n",
-    "FCF  = BYFCF * ((1+g)**n) # FCF future value for period ten years\n",
     "lgr = 0.02 # long term growth rate to last indefinitely \n",
-    "\n",
+    "BYFCF = cash['freeCashFlow'].loc['2020'] # base year FCF\n",
     "shares_outstanding = income['weightedAverageShsOutDil'].loc['2020']"
    ],
    "outputs": [],
    "metadata": {}
   },
   {
    "cell_type": "code",
-   "execution_count": 23,
+   "execution_count": 30,
    "source": [
+    "# FCF future value for period ten years\n",
+    "FCF  = BYFCF * ((1+g)**n) \n",
+    "\n",
     "# Calculate discounted free cash flow for period of ten years\n",
     "DFCF = FCF / (1+r)**n\n",
     "DFCF"
@@ -5914,14 +5915,14 @@
       ]
      },
      "metadata": {},
-     "execution_count": 23
+     "execution_count": 30
     }
    ],
    "metadata": {}
   },
   {
    "cell_type": "code",
-   "execution_count": 28,
+   "execution_count": 31,
    "source": [
     "# Calculate terminal value past ten years\n",
     "DPCF = (BYFCF * ((1+g)**(n+1))) * (1+lgr) / (r-lgr) * (1/((1+r)**(n+1)))\n",
@@ -5938,14 +5939,14 @@
       ]
      },
      "metadata": {},
-     "execution_count": 28
+     "execution_count": 31
     }
    ],
    "metadata": {}
   },
   {
    "cell_type": "code",
-   "execution_count": 25,
+   "execution_count": 32,
    "source": [
     "# Calculate intrinsic value\n",
     "intrinsic_value = DFCF + DPCF\n",
@@ -5962,14 +5963,14 @@
       ]
      },
      "metadata": {},
-     "execution_count": 25
+     "execution_count": 32
     }
    ],
    "metadata": {}
   },
   {
    "cell_type": "code",
-   "execution_count": 26,
+   "execution_count": 33,
    "source": [
     "# Calculate intrinsic value per share\n",
     "intrinsic_value_per_share = intrinsic_value / shares_outstanding\n",
@@ -5986,14 +5987,14 @@
       ]
      },
      "metadata": {},
-     "execution_count": 26
+     "execution_count": 33
     }
    ],
    "metadata": {}
   },
   {
    "cell_type": "code",
-   "execution_count": 27,
+   "execution_count": 34,
    "source": [
     "# Calculate margin of safety\n",
     "market_cap = key_metrics['marketCap'].loc['2020']\n",