diff options
Diffstat (limited to 'services/valuation_service.py')
| -rw-r--r-- | services/valuation_service.py | 7 |
1 files changed, 7 insertions, 0 deletions
diff --git a/services/valuation_service.py b/services/valuation_service.py index 6db4053..8559842 100644 --- a/services/valuation_service.py +++ b/services/valuation_service.py @@ -79,6 +79,13 @@ def run_dcf( growth_rate = historical_growth if historical_growth is not None else 0.05 base_fcf = float(historical[-1]) + if base_fcf <= 0: + return { + "error": ( + "DCF is not meaningful with zero or negative base free cash flow. " + "Use comps, EV/EBITDA, or adjust the model only after underwriting a credible FCF turnaround." + ) + } projected_fcfs = [] for year in range(1, projection_years + 1): |