{"id":17855378,"url":"https://github.com/m-muecke/firmvaluesim","last_synced_at":"2025-04-02T17:43:06.163Z","repository":{"id":156726960,"uuid":"123833665","full_name":"m-muecke/firmValueSim","owner":"m-muecke","description":"Monte Carlo simulation for company valuation","archived":false,"fork":false,"pushed_at":"2022-09-26T17:50:53.000Z","size":15489,"stargazers_count":1,"open_issues_count":0,"forks_count":0,"subscribers_count":1,"default_branch":"master","last_synced_at":"2025-04-01T23:14:14.753Z","etag":null,"topics":["financial-analysis","monte-carlo-simulation","r","risk-management","valuation","wacc"],"latest_commit_sha":null,"homepage":"","language":"R","has_issues":true,"has_wiki":null,"has_pages":null,"mirror_url":null,"source_name":null,"license":"other","status":null,"scm":"git","pull_requests_enabled":true,"icon_url":"https://github.com/m-muecke.png","metadata":{"files":{"readme":"README.Rmd","changelog":null,"contributing":null,"funding":null,"license":"LICENSE","code_of_conduct":null,"threat_model":null,"audit":null,"citation":null,"codeowners":null,"security":null,"support":null,"governance":null,"roadmap":null,"authors":null,"dei":null,"publiccode":null,"codemeta":null}},"created_at":"2018-03-04T22:06:39.000Z","updated_at":"2022-09-26T17:45:03.000Z","dependencies_parsed_at":null,"dependency_job_id":"537846db-d7f0-4dca-9069-ff799c45b589","html_url":"https://github.com/m-muecke/firmValueSim","commit_stats":null,"previous_names":[],"tags_count":0,"template":false,"template_full_name":null,"repository_url":"https://repos.ecosyste.ms/api/v1/hosts/GitHub/repositories/m-muecke%2FfirmValueSim","tags_url":"https://repos.ecosyste.ms/api/v1/hosts/GitHub/repositories/m-muecke%2FfirmValueSim/tags","releases_url":"https://repos.ecosyste.ms/api/v1/hosts/GitHub/repositories/m-muecke%2FfirmValueSim/releases","manifests_url":"https://repos.ecosyste.ms/api/v1/hosts/GitHub/repositories/m-muecke%2FfirmValueSim/manifests","owner_url":"https://repos.ecosyste.ms/api/v1/hosts/GitHub/owners/m-muecke","download_url":"https://codeload.github.com/m-muecke/firmValueSim/tar.gz/refs/heads/master","host":{"name":"GitHub","url":"https://github.com","kind":"github","repositories_count":246863853,"owners_count":20846324,"icon_url":"https://github.com/github.png","version":null,"created_at":"2022-05-30T11:31:42.601Z","updated_at":"2022-07-04T15:15:14.044Z","host_url":"https://repos.ecosyste.ms/api/v1/hosts/GitHub","repositories_url":"https://repos.ecosyste.ms/api/v1/hosts/GitHub/repositories","repository_names_url":"https://repos.ecosyste.ms/api/v1/hosts/GitHub/repository_names","owners_url":"https://repos.ecosyste.ms/api/v1/hosts/GitHub/owners"}},"keywords":["financial-analysis","monte-carlo-simulation","r","risk-management","valuation","wacc"],"created_at":"2024-10-28T02:22:45.446Z","updated_at":"2025-04-02T17:43:06.127Z","avatar_url":"https://github.com/m-muecke.png","language":"R","funding_links":[],"categories":[],"sub_categories":[],"readme":"---\noutput: github_document\n---\n\n\u003c!-- README.md is generated from README.Rmd. Please edit that file --\u003e\n\n```{r, include = FALSE}\nknitr::opts_chunk$set(\n  collapse = TRUE,\n  comment = \"#\u003e\",\n  fig.path = \"man/figures/README-\",\n  out.width = \"100%\"\n)\n```\n\n# firmValueSim\n\n\u003c!-- badges: start --\u003e\n[![R-CMD-check](https://github.com/maximilian-muecke/firmValueSim/workflows/R-CMD-check/badge.svg)](https://github.com/maximilian-muecke/firmValueSim/actions)\n[![Codecov test coverage](https://codecov.io/gh/maximilian-muecke/firmValueSim/branch/master/graph/badge.svg)](https://codecov.io/gh/maximilian-muecke/firmValueSim?branch=master)\n\u003c!-- badges: end --\u003e\n\n## Overview\n\nTo minimize the downside of the assumptions made in an intrinsic valuation approach, the possibility exists to model the risk via a Monte Carlo simulation. Each variable in the model that is derived through assumption that can be stochastically modeled. The main purpose of a Monte Carlo in the context of a valuation is to achieve a risk management component, by integrating the expected value of multiple parameter outcomes. The two main approaches of risk management in valuation are either via a tree-based or simulation approach. The advantages of using simulations instead of decision-trees is that the flexibility of not only choosing a binary input approach, but instead choosing an underlying distribution. The first-step in the simulation is assigning a distribution of the variable, either through historical data, most likely outcome or market consensus. After the distributions are assigned, a single value of each parameter distribution gets sampled and the valuation is done as per usual.\n\n## Installation\n\n```{r eval = FALSE}\ndevtools::install_github(\"maximilian-muecke/firmValueSim\")\n```\n\n## Usage\n\n```{r}\nlibrary(firmValueSim)\nlibrary(ggplot2)\n\n# simulate stock prices via the Gordon Growth model\nprices \u003c- ddm_sim(\n  1.5, r = 0.07, g_mu = 0.03, g_sigma = 0.01, n_sim = 10000, seed = 12345\n)\n# visualize distribution of prices\ndf \u003c- data.frame(prices = prices)\nggplot(df, aes(x = prices)) +\n  geom_histogram(binwidth = 5)\n```\n\n## References\n\n- Abrams, J. B. (2001). Quantitative business valuation. New York: McGraw-Hill.","project_url":"https://awesome.ecosyste.ms/api/v1/projects/github.com%2Fm-muecke%2Ffirmvaluesim","html_url":"https://awesome.ecosyste.ms/projects/github.com%2Fm-muecke%2Ffirmvaluesim","lists_url":"https://awesome.ecosyste.ms/api/v1/projects/github.com%2Fm-muecke%2Ffirmvaluesim/lists"}