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
Stock ticker symbol (e.g., AAPL, MSFT, GOOGL, TSLA)
Response
Date of the DCF calculation
Calculated DCF value (intrinsic value per share)
Current stock price for comparison
Projected revenue growth rate used in calculation
Discount rate (WACC) used in DCF calculation
Terminal growth rate assumption
Number of years projected in the model
Data source identifier (“FMP”)
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:
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
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
{
"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"
}
}
}