Update app.py

app.py

@@ -23,7 +23,6 @@ def get_dcf_of_company(company_name: str) -> str:
     """
     try:
         # Step 1: Retrieve the stock ticker symbol
-        global api_key
         search_url = f'https://www.alphavantage.co/query?function=SYMBOL_SEARCH&keywords={company_name}&apikey=NR9AFISYRYH2B5U3'
         response = requests.get(search_url)
         data = response.json()
@@ -32,35 +31,56 @@ def get_dcf_of_company(company_name: str) -> str:
         else:
             return f"No stock symbol found for company '{company_name}'."
 
-        # Step 2: Retrieve the company's financial data
-        overview_url = f'https://www.alphavantage.co/query?function=OVERVIEW&symbol={symbol}&apikey=NR9AFISYRYH2B5U3'
-        response = requests.get(overview_url)
-        overview = response.json()
-        if not overview:
-            return f"No financial data found for company with symbol '{symbol}'."
-
-        # Extract necessary data
-        free_cash_flow = float(overview.get('FreeCashFlow', 0))
-        wacc = float(overview.get('WeightedAverageCostOfCapital', 0)) / 100
-        growth_rate = float(overview.get('GrowthRate', 0)) / 100
-
-        if free_cash_flow == 0 or wacc == 0:
-            return f"Insufficient data to calculate DCF for company '{company_name}'."
-
-        # Step 3: Calculate DCF
+        # Step 2: Retrieve the company's financial statements
+        financials = {}
+        for statement in ['INCOME_STATEMENT', 'BALANCE_SHEET', 'CASH_FLOW']:
+            url = f'https://www.alphavantage.co/query?function={statement}&symbol={symbol}&apikey=NR9AFISYRYH2B5U3'
+            response = requests.get(url)
+            financials[statement] = response.json()
+
+        # Extract necessary financial data
+        # Note: This is a simplified example. In practice, you'd need to handle
+        # multiple periods, calculate averages, and make growth assumptions.
+        income_statement = financials['INCOME_STATEMENT']['annualReports'][0]
+        cash_flow_statement = financials['CASH_FLOW']['annualReports'][0]
+        balance_sheet = financials['BALANCE_SHEET']['annualReports'][0]
+
+        net_income = float(income_statement['netIncome'])
+        depreciation = float(cash_flow_statement['depreciation'])
+        capex = float(cash_flow_statement['capitalExpenditures'])
+        change_in_working_capital = (
+            float(balance_sheet['totalCurrentAssets']) - float(balance_sheet['totalCurrentLiabilities'])
+        )
+
+        # Calculate Free Cash Flow (FCF)
+        fcf = net_income + depreciation - capex - change_in_working_capital
+
+        # Assume a growth rate and discount rate (WACC)
+        growth_rate = 0.03  # 3% growth rate
+        discount_rate = 0.10  # 10% discount rate
+        years = 5  # Number of years to project
+
+        # Calculate DCF
         dcf_value = 0
-        years = 5  # Number of years for forecasting
         for year in range(1, years + 1):
-            future_cash_flow = free_cash_flow * ((1 + growth_rate) ** year)
-            discounted_cash_flow = future_cash_flow / ((1 + wacc) ** year)
+            future_cash_flow = fcf * ((1 + growth_rate) ** year)
+            discounted_cash_flow = future_cash_flow / ((1 + discount_rate) ** year)
             dcf_value += discounted_cash_flow
 
-        return f"The Discounted Cash Flow (DCF) for company '{company_name}' is: ${dcf_value:,.2f}"
+        # Calculate Terminal Value
+        terminal_value = (fcf * (1 + growth_rate)) / (discount_rate - growth_rate)
+        discounted_terminal_value = terminal_value / ((1 + discount_rate) ** years)
+
+        # Total DCF value
+        total_value = dcf_value + discounted_terminal_value
+
+        return f"The Discounted Cash Flow (DCF) for company '{company_name}' is: ${total_value:,.2f}"
 
     except Exception as e:
         return f"Error calculating DCF for company '{company_name}': {str(e)}"
 
 
+
 final_answer = FinalAnswerTool()
 
 # If the agent does not answer, the model is overloaded, please use another model or the following Hugging Face Endpoint that also contains qwen2.5 coder: