name: valuation
description: 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.
Usage
When the user asks whether a stock is fairly valued, over-valued, or under-valued:
Read references/valuation-guide.md to pick a sensible target P/E for the company's sector.
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.
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.
1---2name: valuation3description: ---4---5---6name: valuation7description: 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.8---910## Usage1112When the user asks whether a stock is fairly valued, over-valued, or under-valued:13141. Read `references/valuation-guide.md` to pick a sensible target P/E for the company's sector.152. Run `scripts/valuation_metrics.py` with the current price, trailing EPS, and the target P/E,16 e.g. `--price 462.97 --eps 11.80 --target-pe 32`.173. Report the computed P/E, the fair-value estimate, and the percentage upside/downside, then state18 plainly whether the stock looks cheap or expensive on this measure.1920Always remind the user that a single P/E heuristic is not investment advice and ignores growth,21debt, and many other factors.
Run npx skillmds@latest add microsoft/valuation in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.
--- It is listed under Coding & Dev Tools on SkillMD.
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