fundamental discount cash flow valuation

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fundamental discount cash flow valuation

posted Jul 29, 2018

Hi. I am learning the quantopian system and I'm attempting to use it to do some basic corporate valuation using the morningstar fundamental database. There seems to be disparity between the numbers my simple algorithm pulls versus what is reported on yahoo finance, (see attached cell for Amazon (AMZN) eg)

When I look at the output for this, the asof_date ("Rev Date" column above) changes on 2/14/16 from 9/30/16 to 12/31/16 (presumably that is when the report was published). However, my total revenue numbers are not close to those reported on yahoo finance. My algorithm pulls total revenue numbers 3.27e+10 (day before report, 2/13/16, asof_date 9/30/16, 32.7 billion), to 4.37e+10 (day after report, 2/14/16, asof_date 12/31/16, 43.7 billion). However, both yahoo finance and morningstar's web page given financial report total revenue of 135,987,000,000 (136 billion),

Am I looking at the wrong field on morningstar for total revenue? I see that the Fundamentals reference page has literally hundreds of obscure accounting data, valuation ratios, and other data on the companies; I am trying to access just the basics for now.

thanks for any help
-a

2 responses

Total revenue is revenue per quarter and is not total revenue per year. The data on Quantopian should be the same as quarterly financial reports.

Got it. Thanks I think I've figured out how to find it. I went to SEC website, and looked at 10Q 10/28/16, this gives "net Sales" (which presumably is revenue) of 32.7B for 3-months ending 9/30/16 (matches my pipeline output), and 9-month total of 92.2 B. The 10K from 2/10/17 gives the total year revenue of 136B (matches yahoo finance). Subtract 136-92.2 = 43.8, which matches the next quarterly number from my code.

Is there a straightforward way to calculate full year financial data (again, just basics like total revenue, earnings, etc)? To get the total revenue for 2017 for amzn, I'd have to 1) figure out reporting dates, 2) from 1, get asof_dates for the prior 4 quarters, then 3) add the revenue numbers up. Is there a simpler way you know of?

thanks very much for any help, and apologies up front for the remedial questions

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian.

In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.