Improve DCF model accuracy

2 files changed, 36 insertions, 3 deletions

diff --git a/services/data_service.py b/services/data_service.py
index 67f2e7b..bfd1290 100644
--- a/services/data_service.py
+++ b/services/data_service.py
@@ -684,3 +684,27 @@ def get_free_cash_flow_series(ticker: str) -> pd.Series:
         return (op + capex).dropna()
     except KeyError:
         return pd.Series(dtype=float)
+
+
+@st.cache_data(ttl=3600)
+def get_free_cash_flow_ttm(ticker: str) -> float | None:
+    """Return trailing-twelve-month free cash flow from quarterly cash flow statements."""
+    t = yf.Ticker(ticker.upper())
+    cf_q = t.quarterly_cashflow
+    if cf_q is None or cf_q.empty:
+        return None
+
+    if "Free Cash Flow" in cf_q.index:
+        vals = cf_q.loc["Free Cash Flow"].iloc[:4].dropna()
+        if len(vals) == 4:
+            return float(vals.sum())
+
+    try:
+        op = cf_q.loc["Operating Cash Flow"].iloc[:4].dropna()
+        capex = cf_q.loc["Capital Expenditure"].iloc[:4].dropna()
+        if len(op) == 4 and len(capex) == 4:
+            return float((op + capex).sum())
+    except KeyError:
+        return None
+
+    return None
diff --git a/services/valuation_service.py b/services/valuation_service.py
index 357c679..1230aa5 100644
--- a/services/valuation_service.py
+++ b/services/valuation_service.py
@@ -50,6 +50,7 @@ def run_dcf(
     terminal_growth: float = 0.03,
     projection_years: int = 5,
     growth_rate_override: float | None = None,
+    base_fcf_override: float | None = None,
     total_debt: float = 0.0,
     cash_and_equivalents: float = 0.0,
     preferred_equity: float = 0.0,
@@ -78,7 +79,7 @@ def run_dcf(
         historical_growth = compute_historical_growth_rate(fcf_series)
         growth_rate = historical_growth if historical_growth is not None else 0.05
 
-    base_fcf = float(historical[-1])
+    base_fcf = float(base_fcf_override) if base_fcf_override is not None else float(historical[-1])
     if base_fcf <= 0:
         return {
             "error": (
@@ -136,6 +137,8 @@ def run_ev_ebitda(
     ebitda: float,
     total_debt: float,
     total_cash: float,
+    preferred_equity: float,
+    minority_interest: float,
     shares_outstanding: float,
     target_multiple: float,
 ) -> dict:
@@ -149,11 +152,13 @@ def run_ev_ebitda(
 
     implied_ev = ebitda * target_multiple
     net_debt = (total_debt or 0.0) - (total_cash or 0.0)
-    equity_value = implied_ev - net_debt
+    other_claims = (preferred_equity or 0.0) + (minority_interest or 0.0)
+    equity_value = implied_ev - net_debt - other_claims
 
     return {
         "implied_ev": implied_ev,
         "net_debt": net_debt,
+        "other_claims": other_claims,
         "equity_value": equity_value,
         "implied_price_per_share": equity_value / shares_outstanding,
         "target_multiple_used": target_multiple,
@@ -164,6 +169,8 @@ def run_ev_revenue(
     revenue: float,
     total_debt: float,
     total_cash: float,
+    preferred_equity: float,
+    minority_interest: float,
     shares_outstanding: float,
     target_multiple: float,
 ) -> dict:
@@ -177,11 +184,13 @@ def run_ev_revenue(
 
     implied_ev = revenue * target_multiple
     net_debt = (total_debt or 0.0) - (total_cash or 0.0)
-    equity_value = implied_ev - net_debt
+    other_claims = (preferred_equity or 0.0) + (minority_interest or 0.0)
+    equity_value = implied_ev - net_debt - other_claims
 
     return {
         "implied_ev": implied_ev,
         "net_debt": net_debt,
+        "other_claims": other_claims,
         "equity_value": equity_value,
         "implied_price_per_share": equity_value / shares_outstanding,
         "target_multiple_used": target_multiple,