Usage
When the user asks whether a stock is fairly valued, over-valued, or under-valued:
- Read
references/valuation-guide.mdto pick a sensible target P/E for the company's sector. - Run
scripts/valuation_metrics.pywith the current price, trailing EPS, and the target P/E, e.g.--price 462.97 --eps 11.80 --target-pe 32. - Report the computed P/E, the fair-value estimate, and the percentage upside/downside, then state plainly whether the stock looks cheap or expensive on this measure.
Always remind the user that a single P/E heuristic is not investment advice and ignores growth, debt, and many other factors.