octagonai Industry P/E Ratios
Retrieve price-to-earnings ratios by specific industry and exchange using the Octagon Claude plugin.
Prerequisites
Ensure the Octagon Claude plugin is installed and configured in Claude Code before invoking this skill.
Workflow
1. Identify Parameters
Determine your query parameters:
- Date: Specific date for the data
- Exchange: NYSE, NASDAQ, etc.
- Industry: Semiconductors, Software, Biotechnology, etc.
2. Execute Query via the Octagon Claude plugin
Use the octagon-agent tool with a natural language prompt:
Retrieve the latest industry P/E ratios for <DATE>, filtered by exchange <EXCHANGE> and industry <INDUSTRY>.
MCP Call Format:
{
"server": "octagon-claude-plugin",
"toolName": "octagon-agent",
"arguments": {
"prompt": "Retrieve the latest industry P/E ratios for 2025-02-03, filtered by exchange NYSE and industry Semiconductors."
}
}
3. Expected Output
The agent returns industry P/E data:
| Metric | Value |
|---|---|
| Industry | Semiconductors |
| Exchange | NYSE |
| P/E Ratio | 12.47 |
| Date | 2025-02-03 |
| Example Company | ON Semiconductor (ON) |
Data Sources: octagon-companies-agent, octagon-financials-agent, octagon-sec-agent, octagon-web-search-agent
4. Interpret Results
See references/interpreting-results.md for guidance on:
- Comparing company P/E to industry P/E
- Industry vs. sector differences
- Cross-industry analysis
- Peer group valuation
Example Queries
Specific Industry and Exchange:
Retrieve the latest industry P/E ratios for 2025-02-03, filtered by exchange NYSE and industry Semiconductors.
NASDAQ Industry:
Get P/E ratios for the Software industry on NASDAQ.
Industry Comparison:
Compare P/E ratios for Semiconductors, Software, and Internet industries.
Historical Trend:
What is the historical P/E trend for the Biotechnology industry?
Peer Analysis:
What are the P/E ratios for companies in the Electric Vehicles industry?
Industry vs. Sector
Hierarchy
Sector (Broad) → Industry (Specific) → Sub-Industry (Niche)
Example
| Level | Example |
|---|---|
| Sector | Technology |
| Industry | Semiconductors |
| Sub-Industry | Memory Chips |
Why Industry Matters
| Comparison | Purpose |
|---|---|
| Sector P/E | Broad market context |
| Industry P/E | Peer group benchmark |
| Company P/E | Specific valuation |
Common Industries
Technology Sector Industries
| Industry | Typical P/E Range |
|---|---|
| Semiconductors | 15-35 |
| Software | 25-50 |
| IT Services | 18-30 |
| Hardware | 15-25 |
| Internet | 30-60 |
Healthcare Sector Industries
| Industry | Typical P/E Range |
|---|---|
| Biotechnology | 20-40 (or N/A) |
| Pharmaceuticals | 15-25 |
| Medical Devices | 25-40 |
| Healthcare Services | 18-28 |
| Health Insurance | 12-20 |
Financial Sector Industries
| Industry | Typical P/E Range |
|---|---|
| Banks | 10-15 |
| Insurance | 10-18 |
| Asset Management | 12-20 |
| REITs | 15-25 |
| Fintech | 25-50 |
Consumer Sector Industries
| Industry | Typical P/E Range |
|---|---|
| Retail | 15-25 |
| Restaurants | 20-35 |
| Apparel | 15-25 |
| Automotive | 8-15 |
| E-commerce | 30-60 |
Industrial Sector Industries
| Industry | Typical P/E Range |
|---|---|
| Aerospace & Defense | 18-25 |
| Machinery | 15-22 |
| Transportation | 12-20 |
| Construction | 12-18 |
| Electrical Equipment | 18-28 |
Using Industry P/E for Analysis
Company Valuation Context
| Comparison | Interpretation |
|---|---|
| Company P/E < Industry P/E | Potential value or concerns |
| Company P/E = Industry P/E | Fairly valued vs. peers |
| Company P/E > Industry P/E | Premium for quality/growth |
Premium/Discount Calculation
Premium/Discount = (Company P/E - Industry P/E) / Industry P/E × 100%
Example
- Company P/E: 18
- Industry P/E (Semiconductors): 12.47
- Premium: (18 - 12.47) / 12.47 = +44.3% (trading at premium)
Peer Group Analysis
Defining Peer Groups
| Approach | Method |
|---|---|
| Same Industry | Direct competitors |
| Similar Size | Market cap range |
| Similar Growth | Growth rate bands |
| Similar Model | Business model match |
Peer Comparison Framework
| Metric | Compare |
|---|---|
| P/E vs. Industry | Relative value |
| Growth vs. Industry | Growth premium |
| Margins vs. Industry | Quality premium |
| Size vs. Industry | Scale premium |
Industry Characteristics
High P/E Industries
| Industry | Why Higher P/E |
|---|---|
| Software | Recurring revenue, scalability |
| Biotech | Pipeline optionality |
| E-commerce | Growth potential |
| Cloud | Secular growth trend |
Low P/E Industries
| Industry | Why Lower P/E |
|---|---|
| Banks | Cyclical, regulated |
| Insurance | Mature, capital-intensive |
| Utilities | Slow growth, stable |
| Commodities | Cyclical, price-takers |
Exchange Considerations
NYSE vs. NASDAQ
| Exchange | Industry Mix |
|---|---|
| NYSE | More diversified, traditional |
| NASDAQ | Tech-heavy, growth-oriented |
Same Industry, Different Exchange
| Consideration | Impact |
|---|---|
| Different companies | Different P/E averages |
| Liquidity differences | Valuation premiums |
| Listing requirements | Company quality |
Common Use Cases
Stock Valuation
Is AMD's P/E reasonable compared to the Semiconductor industry?
Industry Selection
Which industries have the most attractive valuations?
Peer Benchmarking
How does NVDA's valuation compare to semiconductor peers?
M&A Analysis
What P/E is typical for Software industry acquisitions?
Analysis Tips
Use industry, not just sector: More precise comparison.
Consider growth rates: Higher growth justifies higher P/E.
Check profitability mix: Loss-making companies distort averages.
Compare apples to apples: Same business model.
Adjust for size: Large-caps often command premiums.
Look at sub-industries: Even more precise comparisons.
Integration with Other Skills
| Skill | Combined Use |
|---|---|
| sector-pe-ratios | Industry vs. sector context |
| financial-metrics-analysis | Company P/E details |
| income-statement | Earnings driving P/E |
| stock-performance | Price trends within industry |