Metadata-Version: 2.1
Name: pypme
Version: 0.2.0
Summary: Python library for PME (Public Market Equivalent) calculation
Home-page: https://github.com/ymyke/pypme
License: MIT
Keywords: python,finance,investing,financial-analysis,pme,investment-analysis
Author: ymyke
Requires-Python: >=3.8,<3.10
Classifier: License :: OSI Approved :: MIT License
Classifier: Programming Language :: Python :: 3
Classifier: Programming Language :: Python :: 3.8
Classifier: Programming Language :: Python :: 3.9
Requires-Dist: investpy (>=1.0.8,<2.0.0)
Requires-Dist: numpy-financial (>=1.0.0,<2.0.0)
Requires-Dist: pandas (>=1.4.1,<2.0.0)
Requires-Dist: xirr (>=0.1.8,<0.2.0)
Project-URL: Repository, https://github.com/ymyke/pypme
Description-Content-Type: text/markdown

# pypme – Python library for PME (Public Market Equivalent) calculation

Based on the [Modified PME
method](https://en.wikipedia.org/wiki/Public_Market_Equivalent#Modified_PME).

## Example

```python
from pypme import verbose_xpme
from datetime import date

pmeirr, assetirr, df = verbose_xpme(
    dates=[date(2015, 1, 1), date(2015, 6, 12), date(2016, 2, 15)],
    cashflows=[-10000, 7500],
    prices=[100, 120, 100],
    pme_prices=[100, 150, 100],
)
```

Will return `0.5525698793027238` and  `0.19495150355969598` for the IRRs and produce this
dataframe:

![Example dataframe](https://raw.githubusercontent.com/ymyke/pypme/main/images/example_df.png)

Notes:
- The `cashflows` are interpreted from a transaction account that is used to buy from an
  asset at price `prices`.
- The corresponding prices for the PME are `pme_prices`.
- The `cashflows` is extended with one element representing the remaining value, that's
  why all the other lists (`dates`, `prices`, `pme_prices`) need to be exactly 1 element
  longer than `cashflows`.

## Variants

- `xpme`: Calculate PME for unevenly spaced / scheduled cashflows and return the PME IRR
  only. In this case, the IRR is always annual.
- `verbose_xpme`: Calculate PME for unevenly spaced / scheduled cashflows and return
  vebose information.
- `pme`: Calculate PME for evenly spaced cashflows and return the PME IRR only. In this
  case, the IRR is for the underlying period.
- `verbose_pme`: Calculate PME for evenly spaced cashflows and return vebose
  information.
- `investpy_pme` and `investpy_verbose_pme`: Use price information from Investing.com.
  See below.

## Investpy examples -- using investpy to retrieve PME prices online

Use `investpy_pme` and `investpy_verbose_pme` to use a ticker from Investing.com and
compare with those prices. Like so:

```python
from datetime import date
from pypme import investpy_pme

common_args = {
    "dates": [date(2012, 1, 1), date(2013, 1, 1)],
    "cashflows": [-100],
    "prices": [1, 1],
}
print(investpy_pme(pme_ticker="Global X Lithium", pme_type="etf", **common_args))
print(investpy_pme(pme_ticker="bitcoin", pme_type="crypto", **common_args))
print(investpy_pme(pme_ticker="SRENH", pme_type="stock", pme_country="switzerland", **common_args))
```

Produces:

```
-0.02834024870462727
1.5031336254547634
0.3402634808264912
```

The investpy functions take the following parameters:
- `pme_type`: One of `stock`, `etf`, `fund`, `crypto`, `bond`, `index`, `certificate`.
  Defaults to `stock`.
- `pme_ticker`: The ticker symbol/name.
- `pme_country`: The ticker's country of residence. Defaults to `united states`.

Check out [the Investpy project](https://github.com/alvarobartt/investpy) for more
details.


## Garbage in, garbage out

Note that the library will only perform essential sanity checks and otherwise just works
with what it gets, also with nonsensical data. E.g.:

```python
from pypme import verbose_pme

pmeirr, assetirr, df = verbose_pme(
    cashflows=[-10, 500], prices=[1, 1, 1], pme_prices=[1, 1, 1]
)
```

Results in this df and IRRs of 0:

![Garbage example df](https://raw.githubusercontent.com/ymyke/pypme/main/images/garbage_example_df.png)

## References

- [Google Sheet w/ reference calculation](https://docs.google.com/spreadsheets/d/1LMSBU19oWx8jw1nGoChfimY5asUA4q6Vzh7jRZ_7_HE/edit#gid=0)
- [Modified PME on Wikipedia](https://en.wikipedia.org/wiki/Public_Market_Equivalent#Modified_PME)

