# Valuation

> Estimate whether a stock looks cheap or expensive using a price-to-earnings (P/E) based fair-value method. Use when the user asks if a stock is over- or under-valued, or for a fair-value / target price.

- Skill: `azure-ai-foundry/valuation` (Agent Skill, multi-file: 3 files)
- Install (CLI): `npx skillmds@latest add azure-ai-foundry/valuation`
- Raw SKILL.md: https://api.skillmd.com/api/skills/azure-ai-foundry/valuation/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: AI & ML
- Author: azure-ai-foundry (https://skillmd.com/u/azure-ai-foundry)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/azure-ai-foundry/valuation

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## Usage

When the user asks whether a stock is fairly valued, over-valued, or under-valued:

1. Read `references/valuation-guide.md` to pick a sensible target P/E for the company's sector.
2. Run `scripts/valuation_metrics.py` with the current price, trailing EPS, and the target P/E,
   e.g. `--price 462.97 --eps 11.80 --target-pe 32`.
3. 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.