DCF Valuation

DCF Valuation

curl --request GET \
  --url https://stocks-dev.up.railway.app/api/v1/fmp/stock/{symbol}/dcf

const options = {method: 'GET'};

fetch('https://stocks-dev.up.railway.app/api/v1/fmp/stock/{symbol}/dcf', options)
  .then(res => res.json())
  .then(res => console.log(res))
  .catch(err => console.error(err));

<?php

$curl = curl_init();

curl_setopt_array($curl, [
  CURLOPT_URL => "https://stocks-dev.up.railway.app/api/v1/fmp/stock/{symbol}/dcf",
  CURLOPT_RETURNTRANSFER => true,
  CURLOPT_ENCODING => "",
  CURLOPT_MAXREDIRS => 10,
  CURLOPT_TIMEOUT => 30,
  CURLOPT_HTTP_VERSION => CURL_HTTP_VERSION_1_1,
  CURLOPT_CUSTOMREQUEST => "GET",
]);

$response = curl_exec($curl);
$err = curl_error($curl);

curl_close($curl);

if ($err) {
  echo "cURL Error #:" . $err;
} else {
  echo $response;
}

package main

import (
	"fmt"
	"net/http"
	"io"
)

func main() {

	url := "https://stocks-dev.up.railway.app/api/v1/fmp/stock/{symbol}/dcf"

	req, _ := http.NewRequest("GET", url, nil)

	res, _ := http.DefaultClient.Do(req)

	defer res.Body.Close()
	body, _ := io.ReadAll(res.Body)

	fmt.Println(string(body))

}

require 'uri'
require 'net/http'

url = URI("https://stocks-dev.up.railway.app/api/v1/fmp/stock/{symbol}/dcf")

http = Net::HTTP.new(url.host, url.port)
http.use_ssl = true

request = Net::HTTP::Get.new(url)

response = http.request(request)
puts response.read_body

{
  "symbol": "<string>",
  "date": "<string>",
  "dcf": 123,
  "stock_price": 123,
  "revenue_growth_rate": 123,
  "discount_rate": 123,
  "terminal_growth_rate": 123,
  "years_of_projection": 123,
  "source": "<string>",
  "timestamp": "<string>"
}

GET

api

fmp

stock

{symbol}

dcf

DCF Valuation

curl --request GET \
  --url https://stocks-dev.up.railway.app/api/v1/fmp/stock/{symbol}/dcf

const options = {method: 'GET'};

fetch('https://stocks-dev.up.railway.app/api/v1/fmp/stock/{symbol}/dcf', options)
  .then(res => res.json())
  .then(res => console.log(res))
  .catch(err => console.error(err));

<?php

$curl = curl_init();

curl_setopt_array($curl, [
  CURLOPT_URL => "https://stocks-dev.up.railway.app/api/v1/fmp/stock/{symbol}/dcf",
  CURLOPT_RETURNTRANSFER => true,
  CURLOPT_ENCODING => "",
  CURLOPT_MAXREDIRS => 10,
  CURLOPT_TIMEOUT => 30,
  CURLOPT_HTTP_VERSION => CURL_HTTP_VERSION_1_1,
  CURLOPT_CUSTOMREQUEST => "GET",
]);

$response = curl_exec($curl);
$err = curl_error($curl);

curl_close($curl);

if ($err) {
  echo "cURL Error #:" . $err;
} else {
  echo $response;
}

package main

import (
	"fmt"
	"net/http"
	"io"
)

func main() {

	url := "https://stocks-dev.up.railway.app/api/v1/fmp/stock/{symbol}/dcf"

	req, _ := http.NewRequest("GET", url, nil)

	res, _ := http.DefaultClient.Do(req)

	defer res.Body.Close()
	body, _ := io.ReadAll(res.Body)

	fmt.Println(string(body))

}

require 'uri'
require 'net/http'

url = URI("https://stocks-dev.up.railway.app/api/v1/fmp/stock/{symbol}/dcf")

http = Net::HTTP.new(url.host, url.port)
http.use_ssl = true

request = Net::HTTP::Get.new(url)

response = http.request(request)
puts response.read_body

{
  "symbol": "<string>",
  "date": "<string>",
  "dcf": 123,
  "stock_price": 123,
  "revenue_growth_rate": 123,
  "discount_rate": 123,
  "terminal_growth_rate": 123,
  "years_of_projection": 123,
  "source": "<string>",
  "timestamp": "<string>"
}

Overview

Retrieve DCF (Discounted Cash Flow) valuation analysis for any publicly traded company. This endpoint provides professional-grade intrinsic value calculations based on projected future cash flows, helping investors determine if a stock is undervalued or overvalued.

DCF analysis is a fundamental valuation method used by professional analysts and institutional investors to determine fair value based on future cash flow projections.

Parameters

string

required

Stock ticker symbol (e.g., AAPL, MSFT, GOOGL, TSLA)

Response

string

The stock ticker symbol

string

Date of the DCF calculation

number

Calculated DCF value (intrinsic value per share)

number

Current stock price for comparison

number

Projected revenue growth rate used in calculation

number

Discount rate (WACC) used in DCF calculation

number

Terminal growth rate assumption

number

Number of years projected in the model

string

Data source identifier (“FMP”)

string

ISO timestamp of the response

Examples

curl "https://stocks-dev.up.railway.app/api/v1/fmp/stock/AAPL/dcf"

import requests

response = requests.get("https://stocks-dev.up.railway.app/api/v1/fmp/stock/AAPL/dcf")
data = response.json()

dcf_value = data['dcf']
current_price = data['stock_price']
discount = ((dcf_value - current_price) / current_price) * 100

print(f"DCF Analysis for {data['symbol']}:")
print(f"Intrinsic Value: ${dcf_value:.2f}")
print(f"Current Price: ${current_price:.2f}")
print(f"Discount/Premium: {discount:.1f}%")

if dcf_value > current_price:
    print("🟢 Stock appears undervalued")
else:
    print("🔴 Stock appears overvalued")

const response = await fetch('https://stocks-dev.up.railway.app/api/v1/fmp/stock/AAPL/dcf');
const data = await response.json();

const dcfValue = data.dcf;
const currentPrice = data.stock_price;
const discount = ((dcfValue - currentPrice) / currentPrice) * 100;

console.log(`DCF Analysis for ${data.symbol}:`);
console.log(`Intrinsic Value: $${dcfValue.toFixed(2)}`);
console.log(`Current Price: $${currentPrice.toFixed(2)}`);
console.log(`Discount/Premium: ${discount.toFixed(1)}%`);

if (dcfValue > currentPrice) {
    console.log("🟢 Stock appears undervalued");
} else {
    console.log("🔴 Stock appears overvalued");
}

<?php
$response = file_get_contents('https://stocks-dev.up.railway.app/api/v1/fmp/stock/AAPL/dcf');
$data = json_decode($response, true);

$dcf_value = $data['dcf'];
$current_price = $data['stock_price'];
$discount = (($dcf_value - $current_price) / $current_price) * 100;

echo "DCF Analysis for " . $data['symbol'] . ":\n";
echo "Intrinsic Value: $" . number_format($dcf_value, 2) . "\n";
echo "Current Price: $" . number_format($current_price, 2) . "\n";
echo "Discount/Premium: " . number_format($discount, 1) . "%\n";

if ($dcf_value > $current_price) {
    echo "🟢 Stock appears undervalued\n";
} else {
    echo "🔴 Stock appears overvalued\n";
}
?>

Response Example

{
  "symbol": "AAPL",
  "date": "2025-06-28",
  "dcf": 167.07,
  "stock_price": 201.08,
  "revenue_growth_rate": 0.05,
  "discount_rate": 0.09,
  "terminal_growth_rate": 0.025,
  "years_of_projection": 5,
  "source": "FMP",
  "timestamp": "2025-06-28T19:45:12.123456"
}

Understanding DCF Analysis

DCF Methodology

Discounted Cash Flow analysis estimates intrinsic value by:

Projecting Future Cash Flows: Based on revenue growth assumptions
Applying Discount Rate: Using WACC (Weighted Average Cost of Capital)
Terminal Value: Calculating value beyond projection period
Present Value: Discounting all future cash flows to today’s value

Key Assumptions

Revenue Growth Rate: Expected annual revenue growth
Discount Rate (WACC): Company’s cost of capital
Terminal Growth: Long-term sustainable growth rate
Projection Period: Typically 5-10 years of detailed forecasts

Investment Interpretation

DCF > Current Price: Potentially undervalued (buy signal)
DCF < Current Price: Potentially overvalued (sell signal)
DCF ≈ Current Price: Fairly valued
Margin of Safety: Consider 10-20% discount for risk buffer

Use Cases

Value Investing

Long-term Analysis

Identify undervalued stocks
Calculate margin of safety
Compare with market price

Portfolio Management

Investment Decisions

Asset allocation guidance
Risk assessment
Entry/exit timing

Due Diligence

Research & Analysis

Fundamental analysis
Peer comparison
Sensitivity analysis

Risk Management

Valuation Risk

Overvaluation detection
Bubble identification
Conservative estimates

Important Considerations

Model Limitations: DCF models are sensitive to assumptions. Small changes in growth rates or discount rates can significantly impact valuations.

Professional Use: This DCF calculation uses institutional-grade methodology but should be combined with other valuation methods for comprehensive analysis.

Best Practices:

Compare DCF with P/E, P/B, and other multiples
Consider multiple scenarios (bull/bear/base case)
Account for industry-specific factors
Regular model updates with new data

Error Responses

Invalid Symbol (404)

{
  "error": "404: Failed to fetch DCF valuation for INVALID"
}

Insufficient Data (422)

{
  "error": "Insufficient financial data for DCF calculation",
  "detail": "Company requires more historical data for accurate DCF modeling"
}

Rate Limited (429)

{
  "error": "Rate limit exceeded",
  "detail": "FMP API limit reached. Please upgrade plan or try again later."
}

MCP Protocol Usage

For AI agents using the Model Context Protocol:

{
  "method": "tools/call",
  "params": {
    "name": "fmp_get_dcf_valuation",
    "arguments": {
      "symbol": "AAPL"
    }
  }
}

Financial Statements

Get detailed income, balance sheet, and cash flow data

Key Metrics

Get financial ratios and performance metrics

Analyst Estimates

Get professional earnings and revenue forecasts

Stock Quote

Get current market price for comparison

API Documentation

Stock Data

Market Data

FMP Professional

Tools & Utilities

Overview

Parameters

Response

Examples

Response Example

Understanding DCF Analysis

Use Cases

Value Investing

Portfolio Management

Due Diligence

Risk Management

Important Considerations

Error Responses

MCP Protocol Usage

Financial Statements

Key Metrics

Analyst Estimates

Stock Quote

​Overview

​Parameters

​Response

​Examples

​Response Example

​Understanding DCF Analysis

​Use Cases

Value Investing

Portfolio Management

Due Diligence

Risk Management

​Important Considerations

​Error Responses

​MCP Protocol Usage

​Related Endpoints

Financial Statements

Key Metrics

Analyst Estimates

Stock Quote

Overview

Parameters

Response

Examples

Response Example

Understanding DCF Analysis

Use Cases

Important Considerations

Error Responses

MCP Protocol Usage

Related Endpoints