modules/valuation.py

def dcf_valuation(fcf: float, growth_rate: float, terminal_growth: float, discount_rate: float, periods: int) -> dict:
    """
    Performs a basic Discounted Cash Flow (DCF) valuation.
    fcf: Initial Free Cash Flow
    growth_rate: Expected annual growth rate for the projection period
    terminal_growth: Perpetuity growth rate
    discount_rate: WACC or desired discount rate
    periods: Number of years to project
    """
    projections = []
    current_fcf = fcf
    pv_total = 0
    
    for i in range(1, periods + 1):
        current_fcf *= (1 + growth_rate)
        pv = current_fcf / (1 + discount_rate)**i
        projections.append({"year": i, "fcf": current_fcf, "pv": pv})
        pv_total += pv
        
    # Terminal Value
    terminal_fcf = current_fcf * (1 + terminal_growth)
    terminal_value = terminal_fcf / (discount_rate - terminal_growth)
    pv_terminal = terminal_value / (1 + discount_rate)**periods
    
    enterprise_value = pv_total + pv_terminal
    
    return {
        "enterprise_value": enterprise_value,
        "present_value_cash_flows": pv_total,
        "present_value_terminal": pv_terminal,
        "terminal_value": terminal_value,
        "projections": projections
    }