financial-ratios

An npm package to compute various financial ratios based on stock data provided

Current utilities-

1. calculateSharpeRatio
2. calculateTreynorRatio
3. calculateSortinoRatio
4. calculateEnterpriseValueToEBITDA
5. calculatePriceToBook
6. calculateGrahamNumber
7. calculateExpectedReturnCAPM
8. calculateAltmanZScore
9. calculateGordonIntrinsicValueDDM

Note: If any error related to ES module rename file with .mjs extension instead of .js

Example Usage-

`javascript // Importing functions from the finance module import { calculateSharpeRatio, calculateTreynorRatio, calculateSortinoRatio, calculateEnterpriseValueToEBITDA, calculatePriceToBook, calculateGrahamNumber, calculateExpectedReturnCAPM, calculateAltmanZScore, calculateGordonIntrinsicValueDDM, } from 'financial-ratios';

// Test values const riskFreeRate = 0.02; // 2% const averageReturn = 0.1; // 10% const standardDeviation = 0.15; // 15% const marketReturn = 0.08; // 8% const beta = 1.2; const downsideDeviation = 0.12; // 12% const enterpriseValue = 5000000; const ebitda = 1000000; const stockPrice = 50; const bookValuePerShare = 25; const earningsPerShare = 5; const epsGrowthRate = 0.05; // 5% const bondYield = 0.03; // 3% const workingCapital = 2000000; const retainedEarnings = 1500000; const totalAssets = 10000000; const marketValueEquity = 4000000; const totalLiabilities = 6000000; const currentDividend = 2; const growthRate = 0.06; // 6% const discountRate = 0.1; // 10%

// Testing each function with mock values console.log( "Sharpe Ratio:", calculateSharpeRatio(riskFreeRate, averageReturn, standardDeviation) ); console.log( "Treynor Ratio:", calculateTreynorRatio(averageReturn, marketReturn, beta) ); console.log( "Sortino Ratio:", calculateSortinoRatio(riskFreeRate, averageReturn, downsideDeviation) ); console.log( "Enterprise Value to EBITDA Ratio:", calculateEnterpriseValueToEBITDA(enterpriseValue, ebitda) ); console.log( "Price to Book Ratio:", calculatePriceToBook(stockPrice, bookValuePerShare) ); console.log( "Graham Number:", calculateGrahamNumber(earningsPerShare, epsGrowthRate, bondYield) ); console.log( "Expected Return (CAPM):", calculateExpectedReturnCAPM(riskFreeRate, marketReturn, beta) ); console.log( "Altman Z-Score:", calculateAltmanZScore( workingCapital, retainedEarnings, totalAssets, marketValueEquity, totalLiabilities ) ); console.log( "Intrinsic Value (DDM):", calculateGordonIntrinsicValueDDM(currentDividend, growthRate, discountRate) );