Skip to main content
GET
https://stocks-dev.up.railway.app
/
api
/
v1
/
fmp
/
stock
/
{symbol}
/
dcf
DCF Valuation
curl --request GET \
  --url https://stocks-dev.up.railway.app/api/v1/fmp/stock/{symbol}/dcf
{
  "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

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

Response

symbol
string
The stock ticker symbol
date
string
Date of the DCF calculation
dcf
number
Calculated DCF value (intrinsic value per share)
stock_price
number
Current stock price for comparison
revenue_growth_rate
number
Projected revenue growth rate used in calculation
discount_rate
number
Discount rate (WACC) used in DCF calculation
terminal_growth_rate
number
Terminal growth rate assumption
years_of_projection
number
Number of years projected in the model
source
string
Data source identifier (“FMP”)
timestamp
string
ISO timestamp of the response

Examples

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

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

Discounted Cash Flow analysis estimates intrinsic value by:
  1. Projecting Future Cash Flows: Based on revenue growth assumptions
  2. Applying Discount Rate: Using WACC (Weighted Average Cost of Capital)
  3. Terminal Value: Calculating value beyond projection period
  4. Present Value: Discounting all future cash flows to today’s value
  • 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
  • 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

{
  "error": "404: Failed to fetch DCF valuation for INVALID"
}
{
  "error": "Insufficient financial data for DCF calculation",
  "detail": "Company requires more historical data for accurate DCF modeling"
}
{
  "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"
    }
  }
}