Valuation Framework

Below is the documentation for the Valuation Framework functions of Discounting Cash Flows Website (discountingcashflows.com)

Github repository source code: valuation-functions/new-valuation-functions.js.

Warning

All code needs to be compatible with EcmaScript 5.1 (ES5.1) Features from ES6 do not work and need to be avoided.

Note

Please note that this section is currently under active development. Some functions may not be up to date. If you find any outdated functions, please let us know here

$.when().done() - Function

The $.when().done() function is an asynchronous function from the popular JavaScript Framework ‘jQuery’ that retrieves the financial data for us. The $.when().done() function is the only function that we will use from the ‘jQuery’ framework in our valuations.

To understand the $.when().done() function, we need to think about the workflow of valuing a company.

Step 1. Gather financial data for the company (get the income statements, the balance sheets, the cashflow reports, dividends, etc. )

Step 2. Process the data via a valuation model to calculate an intrinsic value of the company.

The $.when().done() function takes care of Step 1. It retrieves the financial data from our API Functions & Endpoints just like in the following example:

Input(
  {
    // Assumptions go here
  }
);

$.when(
  get_income_statement(),
  get_income_statement_ltm(),
  get_balance_sheet_statement(),
  get_balance_sheet_statement_quarterly(),
  get_cash_flow_statement(),
  get_cash_flow_statement_ltm(),
  get_profile(),
  get_dividends_annual(),
  get_treasury(),
  get_fx(),
  get_risk_premium()).done(
  function($income, $income_ltm, $balance, $balance_quarterly, $flows, $flows_ltm, $profile, $dividends, $treasury, $fx, $risk_premium){
  try{

    // Here we take care of Step 2
    // Process the data to calculate an intrinsic value of the company...

  }
  catch (error) {
   throwError(error);
  }
});

So, why do we use $.when().done() anyway and not some other function like $.get()?

The advantage of using $.when().done() is that we submit all requests at once, instead of one by one.

You can think about it like going to the grocery:

Method 1: You can go to the grocery, purchase item1, return home, go back to the grocery, purchase item2, return home, go back to the grocery store, purchase the last item3 and return home and then start cooking.

Method 2: You can also (and probably should) go to the grocery and purchase item1, item2 and item3 simultaneously and then return home with all the groceries and start cooking.

So, you’d probably want to stick to method 2 because it saves a lot of time. And that’s exactly what $.when().done() does. It retrieves all data at once and once it is done(), it can begin processing the data.

Response() - Class

The Response() class is used to unpack financial data.

Once all data has been retrieved from the API, it is now in “http response” format and it would look like something this:

_income = {
   0: [
      { /* Object 1 properties */ },
      { /* Object 2 properties */ },
      { /* Object 3 properties */ },
      // Additional objects
   ],
   1: "success",
   2: {
      readyState: 4,
      getResponseHeader: getResponseHeader(e),
      getAllResponseHeaders: getAllResponseHeaders(),
      // Additional properties
   },
   length: 3
}

The “http response” format is not very pretty and we should never use the object in “http response” format directly as it can cause caching issues in the Watchlist & Notifications page.

We should always use the Response() class to unpack the financial data. By using this class we make sure that:

We avoid any caching issues.
All financial data values are stored in one currency only.

Example Usage

var response = new Response({
  income: $income,
  income_ltm: $income_ltm,
  balance: $balance,
  balance_quarterly: $balance_quarterly,
  balance_ltm: 'balance_quarterly:0',
  flows: $flows,
  flows_ltm: $flows_ltm,
  profile: $profile,
  treasury: $treasury,
  risk_premium: $risk_premium,
}).toOneCurrency('income', $fx).merge('_ltm');
// For the balance sheet, we need to set the LTM manually
response.balance_ltm['date'] = 'LTM';

print(response.income[0].date, 'Last Date');

Valuation Framework

$.when().done() - Function

Response() - Class

Example Usage

Response() - Class Constructor

Response.toOneCurrency() - Class Function

Response.merge() - Class Function

DateValueData() - Class

Example Usage

Defining Original Data

Writing and Processing Formulas

DateValueData.setFormula() - Class Function

Constants

Copying Other Keys

Operators

Formula Functions

sum / add

multiply

minimum / min

maximum / max

average

exponential / nth_power / square_root / nth_root

log_n

discount and compound

growth_rate

linear_regression

DateValueData.compute() - Class Function

Forecasting Data

DateValueData.setEditable() - Class Function

DateValueData.removeDate() - Class Function

DateValueList() - Class

DateValueList() - Class Constructor

DateValueList.average() - Class Function

DateValueList.sum() - Class Function

DateValueList.sublist() - Class Function

DateValueList.valueAtDate() - Class Functions

DateValueList.lastValue() - Class Functions

Displaying Messages

print() function:

throwWarning() and warning() functions:

throwError() and error() functions:

Description() function:

Setting an Estimated Value

_SetEstimatedValue() function:

_StopIfWatch() function:

Example Usage

Setting assumptions

Input() function:

setAssumption() and getAssumption():

Displaying a Chart - DateValueData.renderChart()

Example Usage

Displaying a Table - DateValueData.renderTable()

Example Usage

Dates functions

getYear() function:

Utility functions

fxRate() function:

newArrayFill() function:

arrayValuesToRates() function:

getArraySum() function:

getGrowthRateList() function:

addKey() function:

linearRegressionGrowthRate() function:

averageMargin() function:

averageGrowthRate() function:

applyMarginToList() function:

getGrowthList() function:

toM() function:

toK() function:

toR() and toN() functions:

deepCopy() function:

fillHistoricUsingReport() function:

fillHistoricUsingList() function:

forecast() function:

reportKeyToList() function:

`print()` function:

`throwWarning()` and `warning()` functions:

`throwError()` and `error()` functions:

`Description()` function:

`_SetEstimatedValue()` function:

`_StopIfWatch()` function:

`Input()` function:

`setAssumption()` and `getAssumption()`:

Displaying a Chart - `DateValueData.renderChart()`

Displaying a Table - `DateValueData.renderTable()`

`getYear()` function:

`fxRate()` function:

`newArrayFill()` function:

`arrayValuesToRates()` function:

`getArraySum()` function:

`getGrowthRateList()` function:

`addKey()` function:

`linearRegressionGrowthRate()` function:

`averageMargin()` function:

`averageGrowthRate()` function:

`applyMarginToList()` function:

`getGrowthList()` function:

`toM()` function:

`toK()` function:

`toR()` and `toN()` functions:

`deepCopy()` function:

`fillHistoricUsingReport()` function:

`fillHistoricUsingList()` function:

`forecast()` function:

`reportKeyToList()` function: