Harden valuation edge cases

1 files changed, 50 insertions, 18 deletions

diff --git a/services/data_service.py b/services/data_service.py
index 412ca94..c278a2f 100644
--- a/services/data_service.py
+++ b/services/data_service.py
@@ -298,10 +298,14 @@ def compute_ttm_ratios(ticker: str) -> dict:
                 ratios["netProfitMarginTTM"] = net_income / revenue
 
         if equity and equity > 0 and net_income is not None:
-            ratios["returnOnEquityTTM"] = net_income / equity
+            roe = net_income / equity
+            if abs(roe) < 10:
+                ratios["returnOnEquityTTM"] = roe
 
         if total_assets and total_assets > 0 and net_income is not None:
-            ratios["returnOnAssetsTTM"] = net_income / total_assets
+            roa = net_income / total_assets
+            if abs(roa) < 10:
+                ratios["returnOnAssetsTTM"] = roa
 
         # ROIC = NOPAT / Invested Capital
         if ebit is not None and pretax_income and pretax_income != 0:
@@ -309,27 +313,39 @@ def compute_ttm_ratios(ticker: str) -> dict:
             nopat = ebit * (1 - effective_tax_rate)
             invested_capital = (equity or 0) + (total_debt or 0) - cash
             if invested_capital > 0:
-                ratios["returnOnInvestedCapitalTTM"] = nopat / invested_capital
+                roic = nopat / invested_capital
+                if abs(roic) < 10:
+                    ratios["returnOnInvestedCapitalTTM"] = roic
 
         # ── Valuation multiples ───────────────────────────────────────────────
         if market_cap and market_cap > 0:
             if net_income and net_income > 0:
                 ratios["peRatioTTM"] = market_cap / net_income
             if revenue and revenue > 0:
-                ratios["priceToSalesRatioTTM"] = market_cap / revenue
+                ps = market_cap / revenue
+                if 0 < ps < 100:
+                    ratios["priceToSalesRatioTTM"] = ps
             if equity and equity > 0:
-                ratios["priceToBookRatioTTM"] = market_cap / equity
+                pb = market_cap / equity
+                if 0 < pb < 100:
+                    ratios["priceToBookRatioTTM"] = pb
 
         if market_cap and market_cap > 0:
             ev = market_cap + (total_debt or 0.0) - cash
             if revenue and revenue > 0:
-                ratios["evToSalesTTM"] = ev / revenue
-            if ebitda and ebitda > 0:
-                ratios["enterpriseValueMultipleTTM"] = ev / ebitda
+                ev_sales = ev / revenue
+                if 0 < ev_sales < 100:
+                    ratios["evToSalesTTM"] = ev_sales
+            if ebitda and ebitda > 1e6:
+                ev_ebitda = ev / ebitda
+                if 0 < ev_ebitda < 500:
+                    ratios["enterpriseValueMultipleTTM"] = ev_ebitda
 
         # ── Leverage & Liquidity ──────────────────────────────────────────────
         if equity and equity > 0 and total_debt is not None:
-            ratios["debtToEquityRatioTTM"] = total_debt / equity
+            de = total_debt / equity
+            if 0 <= de < 100:
+                ratios["debtToEquityRatioTTM"] = de
 
         if current_liabilities and current_liabilities > 0 and current_assets is not None:
             ratios["currentRatioTTM"] = current_assets / current_liabilities
@@ -338,8 +354,10 @@ def compute_ttm_ratios(ticker: str) -> dict:
 
         if ebit is not None and interest_expense:
             ie = abs(interest_expense)
-            if ie > 0:
-                ratios["interestCoverageRatioTTM"] = ebit / ie
+            if ie > 0 and ebit > 0:
+                coverage = ebit / ie
+                if 0 < coverage < 1000:
+                    ratios["interestCoverageRatioTTM"] = coverage
 
         # ── Dividends (from cash flow statement) ─────────────────────────────
         dividends_paid = None
@@ -351,9 +369,13 @@ def compute_ttm_ratios(ticker: str) -> dict:
 
         if dividends_paid and dividends_paid > 0:
             if market_cap and market_cap > 0:
-                ratios["dividendYieldTTM"] = dividends_paid / market_cap
+                div_yield = dividends_paid / market_cap
+                if 0 <= div_yield < 1:
+                    ratios["dividendYieldTTM"] = div_yield
             if net_income and net_income > 0:
-                ratios["dividendPayoutRatioTTM"] = dividends_paid / net_income
+                payout = dividends_paid / net_income
+                if 0 <= payout < 10:
+                    ratios["dividendPayoutRatioTTM"] = payout
 
         # Expose raw EBITDA so callers (e.g. DCF EV/EBITDA section) use the
         # same TTM figure as the Key Ratios tab — single canonical source.
@@ -498,12 +520,18 @@ def get_historical_ratios_yfinance(ticker: str) -> list[dict]:
 
                 if equity and equity > 0:
                     if net_income is not None:
-                        row["returnOnEquity"] = net_income / equity
+                        roe = net_income / equity
+                        if abs(roe) < 10:
+                            row["returnOnEquity"] = roe
                     if total_debt is not None:
-                        row["debtEquityRatio"] = total_debt / equity
+                        de = total_debt / equity
+                        if 0 <= de < 100:
+                            row["debtEquityRatio"] = de
 
                 if total_assets and total_assets > 0 and net_income is not None:
-                    row["returnOnAssets"] = net_income / total_assets
+                    roa = net_income / total_assets
+                    if abs(roa) < 10:
+                        row["returnOnAssets"] = roa
 
             # Price-based ratios — average closing price in ±45-day window around year-end
             if shares and not hist.empty:
@@ -525,9 +553,13 @@ def get_historical_ratios_yfinance(ticker: str) -> list[dict]:
                         if net_income and net_income > 0:
                             row["peRatio"] = market_cap / net_income
                         if equity and equity > 0:
-                            row["priceToBookRatio"] = market_cap / equity
+                            pb = market_cap / equity
+                            if 0 < pb < 100:
+                                row["priceToBookRatio"] = pb
                         if total_rev and total_rev > 0:
-                            row["priceToSalesRatio"] = market_cap / total_rev
+                            ps = market_cap / total_rev
+                            if 0 < ps < 100:
+                                row["priceToSalesRatio"] = ps
 
                         # EV/EBITDA — approximate. Skip if EBITDA is too small to be meaningful,
                         # which otherwise creates absurd multiples for some software names.