How to Build an Application to Value a Company (DCF Model)

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Here is some sample code in C++ that demonstrates how you could build an application to calculate the intrinsic value of a stock based on discounted cash flow (DCF):

#include <iostream>
#include <cmath>

double intrinsic_value(double current_price, double expected_cash_flows[], double discount_rate, int num_years) {
  // Calculate the intrinsic value of the stock using the discounted cash flow model
  double intrinsic_val = 0;
  for (int i = 0; i < num_years; i++) {
    intrinsic_val += expected_cash_flows[i] / pow(1 + discount_rate, i + 1);
  }
  return intrinsic_val;
}

int main() {
  double current_price, discount_rate;
  int num_years;
  
  // Read in the current price, discount rate, and number of years
  std::cout << "Enter the current price of the stock: ";
  std::cin >> current_price;
  std::cout << "Enter the discount rate: ";
  std::cin >> discount_rate;
  std::cout << "Enter the number of years: ";
  std::cin >> num_years;
  
  // Read in the expected cash flows for each year
  double expected_cash_flows[num_years];
  for (int i = 0; i < num_years; i++) {
    std::cout << "Enter the expected cash flow for year " << i+1 << ": ";
    std::cin >> expected_cash_flows[i];
  }
  
  // Calculate and print out the intrinsic value of the stock
  double intrinsic_val = intrinsic_value(current_price, expected_cash_flows, discount_rate, num_years);
  std::cout << "The intrinsic value of the stock is: " << intrinsic_val << std::endl;
  
  return 0;
}

This code defines a function intrinsic_value which takes in four parameters: the current price of the stock, an array of expected cash flows for each year, the discount rate, and the number of years. It then calculates the intrinsic value of the stock using the discounted cash flow model, which is a method for valuing a stock based on the present value of future cash flows.

In the main function, we read in the current price, discount rate, and number of years from the user, and then use a loop to read in the expected cash flows for each year. We then use these values to calculate the intrinsic value of the stock. Finally, we print out the intrinsic value to the console.