Automated Stock Analyzer – Discounted Cash Flow Valuation

/ M. Pattabiraman / 33 Comments

Last Updated on

pattu author each postBy M. Pattabiraman   

The automated stock analyzer now includes discounted cash flow valuation. The analyzer now has four methods:

1) Price Multiple Model

2) Sustainable Growth Rate

3) Book Value Growth Rate

4) Discounted Cash Flow

First, I would like address a few issues faced by users while downloading stock price from MoneyControl.

Let me assure you that it works! It would take about a minute to finish as it retrieves data page by page.  If you get an error, it is probably because of the network settings of your workplace as pointed out by Abhijit Buchake. I get the same issue at my workplace but works fine at home.

For certain stocks, data will not be downloaded and the stockprice sheet will become blank. This is an issue with moneycontrol but can easily be fixed by inserting the correct stock code. If you get this error, let me know. I will fix it for you.

According to investopedia,

The Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. DCF analysis uses future free cash flow projections and discounts them (most often using the weighted average cost of capital or WACC) to arrive at a present value, which is then used to evaluate the potential for investment. If the value arrived at through DCF analysis is higher than the current cost of the investment, the opportunity may be a good one.

Unfortunately, the WACC is difficult to estimate using inputs from MorningStar. So this is left as a user-input.

Please read this tutorial on DCF by investopedia before using the sheet, if you are not familiar with the process.

I have calculated the so-called debt level from MorningStar data. Please check this calculation before using results.

I find that sometimes the results of the DCF is funny. If you feel the same, I would be obliged if you could check the calculation.

Unfortunately, I do not have a feel for valuation techniques. So cannot comment too much on this.

Screenshot:

Discounted-Cash-Flow-Valuation

Download version 14th of the freefincal stock analyzer June 16th, 2019 <== latest!

Download the automated Excel stock analyzer version 5.0

Download the Automated Stock Analyzer with DCF analysis

Comments and suggestions are, as always, welcome.

Do share if you found this useful

Do check out these related articles:

About the Author M Pattabiraman author of freefincal.comM. Pattabiraman(PhD) is the author and owner of freefincal.com.  He is an associate professor at the Indian Institute of Technology, Madras since Aug 2006. “Pattu” as he is popularly known, has co-authored two print-books, You can be rich too with goal based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management.  He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice. Pattu publishes unbiased, promotion-free research, analysis and holistic money management advice. Freefincal serves more than one million readers a year (2.5 million page views) with numbers based analysis on topical issues and has more than a 100 free calculators on different aspects of insurance and investment analysis. He conducts free money management sessions for corporates  and associations(see details below). Previous engagements include World Bank, RBI, BHEL, Asian Paints, TamilNadu Investors Association etc. Contact information: freefincal {at} Gmail {dot} com (sponsored posts or paid collaborations will not be entertained)
Want to conduct a sales-free "basics of money management" session in your office?
I conduct free seminars to employees or societies. Only the very basics and getting-started steps are discussed (no scary math):For example: How to define financial goals, how to save tax with a clear goal in mind; How to use a credit card for maximum benefit; When to buy a house; How to start investing; where to invest; how to invest for and after retirement etc. depending on the audience. If you are interested, you can contact me: freefincal [at] Gmail [dot] com. I can do the talk via conferencing software, so there is no cost for your company. If you want me to travel, you need to cover my airfare (I live in Chennai)

Connect with us on social media

Content Policy

Freefincal has original unbiased, conflict-of-interest-free,  topical reports, reviews, commentary and analysis on all aspects of personal finance like mutual funds, stocks, insurance etc. All guest authors and contributors to the site also do not have any conflict of interest. If you find the content useful, please consider supporting us by (1) sharing our articles and (2) disabling ad-blockers for our site if you are using one. No promotional content.  We do not accept sponsored posts and link exchange requests from content writers and agencies. This is our privacy policy Our website is non-profit in nature. The revenue from the advertisement will only be used for hosting charges, domain registration charges, specific plugins necessary for traffic growth and analytics services for search engine optimisation.

Do check out my books

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingMy first book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.  It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You WantGamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantMy second book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

The ultimate guide to travel by Pranav Surya

Travel-Training-Kit-Cover This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step.  Get the pdf for ₹199 (instant download)

Free Apps for your Android Phone

All calculators from our book, “You can be Rich Too” are now available on Google Play!
Install Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)

Blog Comment Policy

Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.

33 Comments

  1. hello sir,
    would it be possible to provide a word file wherein you could mention step by step process of using this file by pasting screen shots?

    Reply

  2. hello sir,
    would it be possible to provide a word file wherein you could mention step by step process of using this file by pasting screen shots?

    Reply

  5. Pattu sir, This calculator is true classic. Take a bow.

    With just one click, I can be able to get entire valuation in one excel (in the improved version).
    Not sure if many people understood the importance of this calculator or not but You truly made my life simple. Take a bow sir. #Respect.

    Best Regards
    Krishna Kishore A

    Reply

    1. Regarding WACC which you have pointed out. It would be better if we use AAA bond rate of say 10% as Cost of Capital. I generally use it sir.

      Reply

  6. Pattu sir, This calculator is true classic. Take a bow.

    With just one click, I can be able to get entire valuation in one excel (in the improved version).
    Not sure if many people understood the importance of this calculator or not but You truly made my life simple. Take a bow sir. #Respect.

    Best Regards
    Krishna Kishore A

    Reply

    1. Regarding WACC which you have pointed out. It would be better if we use AAA bond rate of say 10% as Cost of Capital. I generally use it sir.

      Reply

  7. though i do not grasp all you said in the post due to my inefficiency , but i salute the hard work you are putting in series of articles with excel template. thank you.

    Reply

  8. though i do not grasp all you said in the post due to my inefficiency , but i salute the hard work you are putting in series of articles with excel template. thank you.

    Reply

  13. Can’t download the stock price data from moneycontrol, though downloaded the data from morningstar. When I am downloading data from moneycontrol by clicking get data, it shows that ” Run type Error : 13 type mismatch” and can’nt change the bse nse mode in price data. Thank u sir

    Reply

  14. Can’t download the stock price data from moneycontrol, though downloaded the data from morningstar. When I am downloading data from moneycontrol by clicking get data, it shows that ” Run type Error : 13 type mismatch” and can’nt change the bse nse mode in price data. Thank u sir

    Reply

  17. Dear Sir,
    Tried using the downloaded excel file on MacBook for Unichem Laboratories but got errors & NA in all valuation sheets? In money control run time error 438 is displayed & debug is not happening – excel gets hanged

    Reply

  18. Dear Sir,
    Tried using the downloaded excel file on MacBook for Unichem Laboratories but got errors & NA in all valuation sheets? In money control run time error 438 is displayed & debug is not happening – excel gets hanged

    Reply

  19. Can the macro run auto-magically on all the morningstar tickers and auto “save-as” in morningstar folder respective as ticker_name.xls ? I’m onto this but manually.

    Reply

  20. Free cash flow available on screener and morning star are way different. (for example HDFC bank) do you suggest which one is appropriate?

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *