I’ve uploaded a new model to the Models page of foquant.com. This model is a standard 5 period DCF.

Keep in mind that this model would be the aggregate tab in a workbook. A relatively more granular model would have probably between 5 to 15 more worksheets that feed into the DCF tab.

The Models page at foquant.com now features a binomial bond valuation tool. This is a crude first run at this, limiting the valuation to a bond with four periods to maturity.

I wanted to get this thrown together so I can expand upon the periods and the ability to value options on bonds. For now, though, the user can input their own rate tree, or choose a constant rate, and also dictate whether or not the bond has a coupon rate. The math that goes into the binomial tree is quite simple, so if a user needs to add additional periods it should not be exceptionally difficult.

Update 1: I have now also uploaded the same model but allowing for a callable bond with a user-defined call schedule.

Two new models have been added to the Models page at foquant.com.

The first is the Gordon Growth Model, which is a very simple equity valuation tool. This model features a chart that shows the difference in price dependent upon the dividend growth rate. This is important, because as the growth rate approaches the required rate of return, the value of the equity approaches infinity.

The second is a C++ calculator for a standard coupon bond. The user is asked for inputs concerning the bond, and the value is printed to the screen. Similar to the GGM, this file will also show a range of prices depending upon discount rates, providing almost a high to duration and convexity.

On the topic of the Models page - this page will soon be redesigned. It will be laid out by topic model type, making it easier to view. While this may not seem necessary now as there are only a handful of models, this will be useful as the page grows and the models increase in complexity.