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PequityIntrinsicValuation

A matlab model to calculate valuation of a business based on free cash flow analysis

Usage

Install matlab and octave then run the TestBench.m which provides a sample usage of the valuation model using different input parameteres.

[O_EnterpriseValueLow, O_EnterpriseValueHigh, ...
          O_ProjectedRevenueSeries, O_ProjectedVariableCostSeries, O_ProjectedCashFlowSeries,...
          O_PlotPeriod, O_ErrorCode]... 
= RunValuation (I_Country, I_Industry, I_Debt, I_NonCashAssets, I_Cash,
  I_YearlyFixedCost,
  I_YearlyFinancialEntries[0].Revenue, I_YearlyFinancialEntries[0].CashFlow, 
  I_YearlyFinancialEntries[1].Revenue, I_YearlyFinancialEntries[1].CashFlow, 
  ...);

The model was used as a backend in combination with a REST API component pequity-rest for pequity marketplace and valuation app, but it doesn't depend on the REST API and can be executed locally in a standard matlab/octave environment .

A nice tutorial to use the input parameters (unfortunately in arabic only) can be found here. Facebook translation should be helpful, otherwise the paramters are explanatory : inputs start with I_ and outputs with O_. When executing the RunValuation() function the outputs will be populated in addition to graphs plotting the outputs.

Limitations

Only the countries listed in LoadCountryModelParameters.m are supported, however the model can be extended easily by adding a new entry to the desired country.

Contribution

Fork and raise pull requests

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