DCF Approximation

The indicator for calculating and visualizing the Discounted Cash Flow (DCF) for a selected stock.

It uses the Weighted Average Cost of Capital (WACC) with a margin of safety and the Free Cash Flow (FCF) calculation for cash flow analysis. The DCF is calculated by summing the discounted annual FCFs over a 10-year period.

The chart color depends on the value of the current price percentage - it turns red when the market price is over valuation, yellow around a fair value, and green for the price under valuation.

This is an early version of the indicator, so I would appreciate your suggestions for improving the code and formulas.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.


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