DCF Calculations
Our API DCF calculation:
Market Cap = Weighted Average Shares Outstanding Diluted * Stock Price
Enterprise Value NB = Market Cap + Long Term Debt + Short Term Debt
Equity Value = Enterprise Value NB - Net Debt
DCF = Equity Value / Weighted Average Shares Outstanding Diluted
Stock Beta = 3-year monthly price change of the stock relative to the monthly price change of the S&P 500 (COV(Rs,RM) / VAR(Rm))
On our website you can interact with the model: we set an average growth rate (an average projection for the next five years, discounted back at the WACC), and you can change it to see how the DCF value responds. In the API, this rate is a fixed value.
This is why the API and the website can show different values. For interactive rates, we recommend https://github.com/halessi/DCF.