Financial Modeling

Financial Modeling (Phase 6)

All modeling logic is consolidated into a single script that executes the complete sequence: WACC → Assumptions → DCF → Intrinsic Value.

1. Execute the script: python skills/financial_modeling/scripts/calculate.py {TICKER} {TICKER_metadata_path}
2. Verify it threw no errors.

What the Script Does

| Step | Action | Details | |------|--------|---------| | 1 | Fetch Market Data | Calls tools/market_data.py profile {TICKER} for share price, beta, market cap | | 2 | Read Historical Data | Parses Financial History table from metadata for L4Q averages | | 3 | Read Qualitative Data | Parses Economic Moat, Margin Outlook, Growth Outlook from metadata | | 4 | Calculate WACC | CAPM with Blume-adjusted beta, capital structure weights | | 5 | Generate Assumptions | Three-stage DCF assumptions blending historical trends + qualitative outlook | | 6 | Run DCF Projections | 10-year projections with interpolated growth/margin, terminal value via Gordon Growth | | 7 | Compute Intrinsic Value | Equity bridge: EV + Cash - Debt → Per Share | | 7b | FX & ADR Conversion | If reporting currency != USD, convert IVPS to USD. Apply ADR ratio to share count if applicable | | 8 | Update Metadata | Replaces WACC, Assumptions, DCF Model, and Intrinsic Value sections in markdown |

Prerequisites

• output_data/TICKER/TICKER_metadata.md must exist with Financial History and Qualitative Assessment sections
• Internet access required for Yahoo Finance market data lookup
• Python 3.10+ with yfinance installed

Key Parameters

| Parameter | Source | Default | |-----------|--------|---------| | Risk-Free Rate | Hardcoded (TODO: fetch 10Y Treasury) | 4.20% | | Equity Risk Premium | Hardcoded | 5.00% | | Terminal Growth | Moat rating: Wide=4%, Narrow=3%, None=2.5% | 3.00% | | MCT | Derived from IC, default if negative IC | 100.0x | | Tax Rate (statutory) | Hardcoded for WACC | 25% | | Tax Rate (NOPAT) | L4Q average adjusted tax rate | Varies | | WACC Bounds | Floor 6%, Cap 15% | — | | FX Rate | market_data.py if Currency != USD | 1.0 | | ADR Ratio | Parsed from metadata header | 1.0 |

Changelog

• 2026-05-06: Fixed crash when Yahoo Finance returns null for beta. Added explicit checks for share_price, market_cap, and shares_outstanding.

Source & license

This open-source skill is cataloged on AgentStack and links to its original source — we do not rehost the code.

• Author: Ruinius
• Source: Ruinius/financial-analyst-skills
• License: MIT

Install and usage instructions live in the source repository linked above.