Finance & Tech // Mediocre but avid programmer

Building a probabilistic intrinsic value calculator with Python and Streamlit

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Note from Towards Data Science’s editors: While we allow independent authors to publish articles in accordance with our rules and guidelines, we do not endorse each author’s contribution. You should not rely on an author’s works without seeking professional advice. See our Reader Terms for details.

Valuing a business is an inherently probabilistic endeavor:

“How likely is projected revenue growth to materialize?”
“To what extent will the impending digitization of back-office operations yield margin improvements?”
“Will federal tax rates be raised in the coming year, and if so, by how much?”

The answers to the abundance of such company- and…


Leveraging comprehensive comparables data provided by Aswath Damodaran

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Note from Towards Data Science’s editors: While we allow independent authors to publish articles in accordance with our rules and guidelines, we do not endorse each author’s contribution. You should not rely on an author’s works without seeking professional advice. See our Reader Terms for details.

In his book on special situations investing, famous value investor Joel Greenblatt uses a great anecdote for stressing the merits of using comparables data to identify mispriced assets selling at bargain prices.

“[…] [T]he in-laws follow a very simple strategy. Whether they find a beautiful specimen of antique furniture […] or an impressionist painting…


Using the Streamlit library to display financial data from Yahoo Finance

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Photo by Maarten Deckers on Unsplash

Note from Towards Data Science’s editors: While we allow independent authors to publish articles in accordance with our rules and guidelines, we do not endorse each author’s contribution. You should not rely on an author’s works without seeking professional advice. See our Reader Terms for details.

Recent anecdotes of day traders tripling their net worth with OTM call options after “in-depth” price chart analysis have led to a somewhat distorted view on investing in general and stocks in particular. …


Employing Monte Carlo simulations to determine the equity value of publicly listed companies

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Note from Towards Data Science’s editors: While we allow independent authors to publish articles in accordance with our rules and guidelines, we do not endorse each author’s contribution. You should not rely on an author’s works without seeking professional advice. See our Reader Terms for details.

In a perfectly predictable world, we would have exact information about the future growth rates and cash flows of a business, which would lead to a single accurate intrinsic value of the company. However, in reality, things are more uncertain. In fact, while some analysts give out exact stock price targets, various inputs into…


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The following passages shortly describe how to build a Python program that can calculate the fair value of a company, using data from Yahoo Finance. Before jumping into the Python technicalities, it makes sense to have a quick look at the factors that impact the fair value of a company.

I. Theoretical Background

Financial theory posits that the fair value of a firm is equal to the sum of all future cash flows generated by the business, discounted using a risk-adjusted rate. In other words the current value of any company is equal to the cash that the company will generate, adjusted to…

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