Script created to calculate DCF methods for Axon control engineering valuation..

axon_dcf.py

import math

# Inputs
initial_revenue = 12498748
growth_rate = 0.50
cogs_pct = 0.50
opex_pct = 0.08
depreciation = 50000
capex = 200000
wc_pct = 0.02
tax_rate = 0.30
wacc = 0.12
terminal_growth = 0.03
years = 5

# Lists for storing yearly data
revenues = []
cogs_list = []
gross_profit_list = []
opex_list = []
ebitda_list = []
tax_list = []
nopat_list = []
wc_list = []
fcf_list = []
df_list = []
pv_fcf_list = []

revenue = initial_revenue

for t in range(1, years + 1):
    revenues.append(revenue)
    
    cogs = revenue * cogs_pct
    cogs_list.append(cogs)
    
    gross_profit = revenue - cogs
    gross_profit_list.append(gross_profit)
    
    opex = revenue * opex_pct
    opex_list.append(opex)
    
    ebitda = revenue - cogs - opex
    ebitda_list.append(ebitda)
    
    tax_val = ebitda * tax_rate
    tax_list.append(tax_val)
    
    nopat = ebitda - tax_val
    nopat_list.append(nopat)
    
    wc = revenue * wc_pct
    wc_list.append(wc)
    
    fcf = nopat + depreciation - capex - wc
    fcf_list.append(fcf)
    
    df = 1 / ((1 + wacc) ** t)
    df_list.append(df)
    
    pv_fcf = fcf * df
    pv_fcf_list.append(pv_fcf)
    
    revenue *= (1 + growth_rate)

total_pv_fcf = sum(pv_fcf_list)
last_fcf = fcf_list[-1]

# Terminal Value Calculation Breakdown
# terminal_value = (last_fcf * (1 + terminal_growth)) / (wacc - terminal_growth)
terminal_value = (last_fcf * (1 + terminal_growth)) / (wacc - terminal_growth)
df_year5 = df_list[-1]
pv_terminal_value = terminal_value * df_year5
enterprise_value = total_pv_fcf + pv_terminal_value

# Print results in markdown format
print("# DCF Valuation Report\n")
print("**Assumptions**")
print(f"- **Initial Revenue (Year 1):** INR {initial_revenue:,}")
print(f"- **Revenue Growth Rate:** {growth_rate*100:.0f}% per annum")
print(f"- **COGS:** {cogs_pct*100:.0f}% of Revenue")
print(f"- **Operating Expenses (OPEX):** {opex_pct*100:.0f}% of Revenue")
print(f"- **Depreciation:** INR {depreciation:,} per year")
print(f"- **Capital Expenditure (CapEx):** INR {capex:,} per year")
print(f"- **Working Capital:** {wc_pct*100:.0f}% of Revenue")
print(f"- **Tax Rate:** {tax_rate*100:.0f}% on EBITDA")
print(f"- **Discount Rate (WACC):** {wacc*100:.0f}%")
print(f"- **Terminal Growth Rate:** {terminal_growth*100:.0f}%")
print(f"- **Projection Period:** {years} Years\n")

print("## Yearly Projections\n")
header = (
    "| Year | Revenue (INR) | COGS (INR) | Gross Profit (INR) | OPEX (INR) | EBITDA (INR) | "
    "Taxes (INR) | NOPAT (INR) | Depreciation (INR) | CapEx (INR) | Working Capital (INR) | "
    "FCF (INR) | Discount Factor | PV of FCF (INR) |"
)
separator = (
    "|:---:|--------------:|-----------:|-------------------:|-----------:|-------------:|"
    "------------:|------------:|-------------------:|------------:|----------------------:|"
    "-----------:|----------------:|-----------------:|"
)
print(header)
print(separator)

for i in range(years):
    print(
        f"| {i+1} "
        f"| {revenues[i]:,.2f} "
        f"| {cogs_list[i]:,.2f} "
        f"| {gross_profit_list[i]:,.2f} "
        f"| {opex_list[i]:,.2f} "
        f"| {ebitda_list[i]:,.2f} "
        f"| {tax_list[i]:,.2f} "
        f"| {nopat_list[i]:,.2f} "
        f"| {depreciation:,.2f} "
        f"| {capex:,.2f} "
        f"| {wc_list[i]:,.2f} "
        f"| {fcf_list[i]:,.2f} "
        f"| {df_list[i]:.4f} "
        f"| {pv_fcf_list[i]:,.2f} |"
    )

print("\n## DCF Summary\n")
print(f"- **Total PV of FCF (Years 1–{years}):** INR {total_pv_fcf:,.2f}")

# Terminal Value explanation line
print(f"- **Terminal Value:** (({last_fcf:,.2f} * (1 + {terminal_growth})) / ({wacc} - {terminal_growth})) = INR {terminal_value:,.2f}")
print(f"- **Discount Factor for Year {years} (1/(1+WACC)^{years}):** {df_year5:.4f}")
print(f"- **PV of Terminal Value:** {terminal_value:,.2f} * {df_year5:.4f} = INR {pv_terminal_value:,.2f}")
print(f"- **Enterprise Value (EV):** INR {total_pv_fcf:,.2f} + INR {pv_terminal_value:,.2f} = INR {enterprise_value:,.2f}")