Methods¶

Each method has a stable id, a versioned implementation, golden test cases and a methodology page. The methods reference lists every input.

A method computes the consequence of the inputs and conventions it receives; choosing the method, the conventions and the inputs, and verifying the result, belong to the user. See the disclaimer.

Method	Status	What it computes
`dates.year_fraction`	available	Year fraction between two dates under an ISDA day count
`rates.convert`	available	Equivalent annual rate under another compounding convention
`rates.real_nominal`	available	Real rate from a nominal rate, or the reverse (Fisher relation)
`tvm.present_value`	available	Present value of periodic flows with one rate or one rate per period
`tvm.npv`	available	Net present value of a cash flow series
`tvm.xnpv`	available	Net present value of dated cash flows
`tvm.irr`	available	Internal rate of return
`tvm.xirr`	available	Internal rate of return of dated cash flows
`tvm.mirr`	available	Modified internal rate of return
`tvm.annuity`	available	Present and future value of a level or growing annuity
`tvm.perpetuity`	available	Present value of a level or growing perpetuity
`tvm.future_value`	available	Future value of a present amount and level payments
`loans.instalment`	available	Constant instalment of a loan, with an optional balloon amount and rounding
`loans.number_of_instalments`	available	Number of instalments that repays a loan and the final instalment
`loans.amortisation_schedule`	available	Amortisation schedule: French, constant principal or bullet, with grace period, balloon and rounding
`coc.cost_of_equity`	available	Cost of equity by CAPM with explicit country, size and specific premia
`coc.beta_relever`	available	Levered beta from an unlevered beta, or the reverse (Hamada, Harris-Pringle)
`coc.beta_peers`	available	Mean and median unlevered beta of comparables, relevered to a target structure
`coc.cost_of_debt`	available	Pre-tax and after-tax cost of debt
`coc.wacc`	available	Weighted average cost of capital at a target capital structure
`tv.gordon`	available	Terminal value at N with stable growth, CF_{N+1} / (r − g)
`tv.value_driver`	available	Terminal value at N with growth earned by reinvesting g / RONIC
`tv.h_model`	available	Terminal value at N with growth declining linearly (H-model)
`tv.exit_multiple`	available	Terminal value at N as a multiple of a metric, with the implied growth
`tv.limited_horizon`	available	Terminal value at N of a flow lasting n more periods, plus a residual value
`tv.normalised_income`	available	Terminal value at N as a capitalised normalised income
`tv.liquidation`	available	Net liquidation value at N, every line in the audit trail
`tv.compare`	available	Several terminal value techniques on one rate, growth cap and basis
`dcf.fcff`	preview	Value of operations, enterprise value and equity value from unlevered free cash flows over explicit stages and a terminal value
`ratios.profitability`	preview	ROE, ROI, ROA, ROS, margins, capital turnover and the ROE decomposition in three factors and in the leverage form
`ratios.capital_structure`	preview	Debt to equity, net financial position to equity, equity ratio, structure margins and fixed-asset coverage
`ratios.liquidity`	preview	Current, quick and cash ratios, net working capital and treasury margin
`ratios.working_capital`	preview	Days sales, inventory and payable outstanding and the cash conversion cycle
`ratios.debt_service`	preview	Interest cover, net financial position to EBITDA, DSCR per period and LLCR
`ratios.covenants`	preview	Covenant tests on the definitions of the loan agreement: outcome, tested value and headroom per covenant
`analysis.goal_seek`	available	Value of one input of any method at which one of its outputs equals a target
`analysis.sensitivity`	available	One output of any method across a one-way or two-way table of input values
`analysis.scenarios`	available	Outputs of any method under named cases, with deltas against the base case
`analysis.tornado`	available	Inputs of any method ranked by the swing they cause in one output

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What comes next, with its issues and specifications, is in the roadmap, generated from the plan.

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