fintech-algorithms
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Intrinsic Valuation

5 algorithms in Fundamental Analysis and Valuation · 5 with asserted arithmetic.

In this family#

  1. Free-Cash-Flow DCF verified

    Discounts an explicit free-cash-flow-to-the-firm forecast at the WACC and adds a growing-perpetuity terminal value built from the last forecast period, then bridges the resulting enterprise value to equity value and to value per diluted share.

    freeCashFlowDcf(data)
  2. Dividend Discount Model verified

    Discounts an explicit per-share dividend forecast at the cost of equity and adds a growing-perpetuity terminal value built from the final forecast dividend, returning intrinsic value per share.

    dividendDiscountModel(data)
  3. Gordon Growth Model verified

    Capitalises a single next-period dividend as a growing perpetuity, dividing it by the spread between the cost of equity and the perpetual growth rate, and exposes that spread and its reciprocal alongside the resulting value per share.

    gordonGrowthModel(data)
  4. Residual-Income Model verified

    Rolls per-share book value forward through a forecast, charges each period's opening book value at the cost of equity, discounts the residual income that remains, and adds opening book value plus a growing-perpetuity continuing value to reach intrinsic value per share.

    residualIncomeModel(data)
  5. Economic Value Added verified

    Charges each period's opening invested capital at the WACC, discounts the NOPAT that remains above that charge, and adds a growing-perpetuity continuing value to give market value added and an enterprise value equal to opening invested capital plus that premium.

    economicValueAdded(data)

What they share#

Every topic here is a record-transform, so once you have called one the rest follow the same shape. Import paths differ only in the final segment:

ts
import { freeCashFlowDcf } from "fintech-algorithms/fundamental-analysis-and-valuation/intrinsic-valuation/free-cash-flow-dcf";
import { dividendDiscountModel } from "fintech-algorithms/fundamental-analysis-and-valuation/intrinsic-valuation/dividend-discount-model";

Read them in the order above — the sequence is pedagogical, not alphabetical.

Where this sits#

Fundamental Analysis and Valuation collects 52 algorithms across 6 families. For the concept behind this family rather than the call signatures, see the concept guides.