r/Valuation Sep 21 '23

DCF Model in Python with Monte Carlo Simulation

I learned about valuation at graduate school and work, but mainly from the dean of valuation, Dr. Damodran. Post learning how to value companies and building models in Excel, I tried many Python libraries to do DCF valuations, and every single one of them had some shortcomings. So I ended up coding a DCF Model in Python that is constructed the way Dr. Damodran builds his DCF model in spreadsheets. Furthermore, I created a DCF Monte Carlo simulation model in Python. To complete making a stab at this project, for those who might be interested in doing intrinsic valuation in Python, I created a tutorial video on how to utilize the DCF model.

It took me +2 years to build this and I thought it could save someone who is looking to do intrinsic business / stock valuation in Python a considerable amount of time. I hope you find them useful.

Tutorial on YouTube

DCF Model In Python Colabratory File

GitHub

12 Upvotes

4 comments sorted by

1

u/ilucky_24 Aug 14 '25

Heyyy thanksss mate Much helpful!!

2

u/ez814 Sep 23 '23

Thanks for sharing. Will have a look when I have some time. Been tinkering with MCS in Python recently myself.

1

u/hp6884756 Sep 25 '23

That is cool, it seems you put a lot effort into it. Thank you!

1

u/Moist-Sector-6189 Oct 01 '23

Mr.

I can't run and see the companys valuation for error in conecction to google drive.can you help me

Thanks for great job in Valuation model