The problem

Valuation data is often viewed in a vacuum, making it difficult to tell if a stock is actually expensive or just trading at a standard sector multiple. Analysts waste time manually calculating premiums and discounts across fragmented financial ratios.

What it does

• Calculates percentage premiums and discounts for P/E, Forward P/E, EV/Sales, P/FCF, and P/B against sector medians.
• Classifies valuations into five categories ranging from Deep Discount to High Premium based on quantitative thresholds.
• Identifies the single largest statistical outlier among all provided valuation metrics.
• Generates a structured reality check verdict on whether the stock warrants deeper fundamental investigation.

Why this beats prompting it yourself

This skill enforces strict classification logic and mathematical consistency that raw prompts often hallucinate. It prevents the model from ignoring negative multiples or inventing benchmarks, ensuring every "Rich" or "Cheap" verdict is grounded in the same formulaic thresholds.

Use cases

• Sanity checking a potential long or short candidate before a deep dive.
• Screening a list of tickers to identify which ones are trading furthest from sector norms.
• Identifying value traps where a "deep discount" is present across all metrics.

Known limitations

Requires manual input of sector benchmarks to ensure accuracy. Negative multiples or book values are marked as not meaningful rather than being calculated.