Automated Stock Analyzer – Discounted Cash Flow Valuation

/ M. Pattabiraman / 33 Comments

Published: January 20, 2015 at 9:55 am

Last Updated on

By 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.

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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

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About the Author

Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman 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.
He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association. For speaking engagements write to pattu [at] freefincal [dot] com

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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

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