Readme.md

In JancoS/EquityR: Common stock valuation methods. Including single stage DDM, multistage DDM and basic CF models. Package mainly builds on the tidyquant and finreportr packages.

title: "Readme" author: "Janco Strydom" date: "17 September 2018" output: github_document

```{r setup, include=FALSE} knitr::opts_chunk$set(echo = TRUE)

# EquityR Package

## Introduction

The main goal of the EquityR package is to provide basic stock/equity analysis. This is done by building on the
packagas tidyquant and finreportr. The aim is to incorporate the package into the tidyquant environment.

The functions are:
  * Plot_Ratios()
  * Growth_Rate()
  * Gordon_growth_rate()
  * Single_DDM()
  * Multi_DDM()
  * Calculate_FCFF()
  * FCFF_Basic()
  * FCFE_Basic()
  * WACC()
  * Justified_PE()
  * Justified_PB()
  * Justified_PS()

## Installation

The package can be installed as follows:  

```{r}
# Devtools github installation

devtools::install_github()

Basic Example

In this example, Apple Inc. (AAPL) stock is briefly evaluated.

```{r, echo=FALSE}

Ticker <- "AAPL"

Plot some of the financial ratios

Ratios <- c("Earnings Per Share USD", "Dividends USD")

Call the Plot_Ratios function

Plot_Output <- Plot_Ratios(Ticker, Ratios)

print(Plot_Output[[1]]) print(Plot_Output[[2]])

Calculate the growth rate g for AAPL. The function calculates the average ROE growth rate and most recent ROE growth rate

growth_rate <- Growth_Rate(Ticker)

Calculate the growth rate using the Gordon growth model

Gordon_g <- Gordon_Growth(Ticker, Req_Rate = 0.2)

DDM model

First using the single stage DDM

Ticker <- "MSFT" Req <- 0.12 growth_rate <- 0.1

Single_Stage_DDM <- Single_DDM(Ticker, Req, growth_rate)

Try a multistage DDM

Ticker <- "MSFT" Req <- 0.12 growth_rate <- 0.11 terminal_g <- 0.08 length <- 5

Multi_Stage_DDM <- Multi_DDM(Ticker, Req, growth_rate, terminal_g, length)

Calculate the FCFF

The CalculateFCFF() function calculates the FCFF based on NI, change in WC, CAPEX and depreciation expense

Ticker <- "AAPL" year <- 2017

FCFF_AAPL_2017 <- Calculate_FCFF(Ticker, year)

Basic FCFF model

Ticker <- "AAPL" WACC <- 12 growth_rate <- 0.11

FCFF_Value <- FCFF_Basic(Ticker, WACC, growth_rate)

Basic FCFE model

Ticker <- "AAPL" Req <- 0.12 growth_rate <- 0.11 year <- 2017

FCFE_Value <- FCFE_Basic(Ticker, Req, year, growth_rate)

Calculate WACC

Ticker <- "AAPL" Cost_Equity <- 0.12 Cost_Debt <- 0.08 Cost_Pref <- 0.15 Tax_Rate <- 28 Per_Equity <- 0.5 Per_Debt <- 0.3

WACC(Ticker, Cost_Equity, Cost_Debt, Cost_Pref, Tax_Rate, Per_Equity, Per_Debt)

Calculate

```

Vignettes

Additional

For further reading on the tidyquant package: https://github.com/business-science/tidyquant For further reading on the finreportr package: https://github.com/sewardlee337/finreportr

Feedback

Please leave any feedback on github.

JancoS/EquityR documentation built on May 9, 2019, 3:25 a.m.