Fix valuation methodology and documentation

1 files changed, 3 insertions, 3 deletions

diff --git a/README.md b/README.md
index c98a363..b82ee48 100644
--- a/README.md
+++ b/README.md
@@ -10,7 +10,7 @@ A local financial analysis dashboard. Enter any stock ticker to get a formatted
 - **Overview** — Price chart (1M / 3M / 6M / 1Y / 5Y), key stats (market cap, P/E, 52W range, beta)
 - **Financials** — Annual and quarterly Income Statement, Balance Sheet, and Cash Flow Statement with year-over-year % change columns
 - **Valuation** — Key ratios grid (P/E, EV/EBITDA, margins, ROE, etc.), interactive DCF model with adjustable WACC and growth rate, comparable companies table
-- **News** — Recent articles with Bullish / Bearish / Neutral sentiment badges and a 7-day sentiment summary
+- **News** — Recent articles with heuristic Bullish / Bearish / Neutral tags and a 7-day sentiment summary
 
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@@ -96,7 +96,7 @@ prism/
 
 ## DCF Model Notes
 
-The DCF model uses **5 years of historical Free Cash Flow** from yfinance to compute an average growth rate, then projects forward using your chosen assumptions:
+The DCF model uses historical **Free Cash Flow** from yfinance, computes a capped median growth rate from valid positive-FCF periods, and then projects forward using your chosen assumptions:
 
 | Input | Default | Range |
 |---|---|---|
@@ -104,7 +104,7 @@ The DCF model uses **5 years of historical Free Cash Flow** from yfinance to com
 | Terminal Growth Rate | 2.5% | 0.5–5% |
 | Projection Years | 5 | 3–10 |
 
-The model uses the **Gordon Growth Model** for terminal value. Intrinsic value per share is compared against the current market price to show upside/downside.
+The model uses the **Gordon Growth Model** for terminal value. It first estimates **enterprise value**, then bridges to **equity value** using debt and cash before calculating value per share. Terminal growth must remain below WACC.
 
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