peg-valuation

PEG valuation, Price Earnings to Growth ratio, Peter Lynch PEG methodology, growth-adjusted valuation, earnings growth rate, PE ratio valuation, PEG sector comparison, undervalued growth stocks, fair

SKILL.md

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PEG Valuation

Peter Lynch PEG (Price/Earnings to Growth) methodology. PEG = P/E Ratio ÷ Earnings Growth Rate (%). Growth-adjusted valuation that answers: "Is this stock's growth justifying its multiple?"

Preflight

Run canonical pre-flight per contracts/preflight.md.

**get_realtime_quote availability **: If get_realtime_quote is not yet deployed, prompt user for current stock price. PE numerator from search_earnings_calendar (NTM consensus EPS × current price = PE) as fallback.

Include the X-Agentii-Trace header on every tool call per contracts/x-agentii-trace-header.md — carry the _run_id from your first tool result and name yourself (and your parent, if you were spawned).

Triggers

  • PEG valuation for {ticker}
  • compute PEG ratio {ticker}
  • Peter Lynch PEG {ticker}
  • growth-adjusted valuation {ticker}
  • is {ticker} undervalued by PEG
  • PEG analysis {ticker}
  • price earnings growth {ticker}
  • compare PEG across peers
  • {ticker} PEG vs sector
  • growth at reasonable price {ticker}

Defaults

Parameter Default Notes
growth_source consensus consensus estimates preferred; fallback to historical CAGR
include_peers true Sector PEG comparison
lookback_years 3 Historical CAGR computation window

Methodology

Retrieval Scope

structured_only — PEG uses XBRL earnings data + real-time price + earnings calendar for growth estimates.

Retrieval Strategy

See contracts/retrieval.md for the canonical decision tree; skill-specific retrieval detail is in references/methodology.md.

Temporal Scope

Default: 4 fiscal quarters (max 12). PEG uses trailing 4 quarters for LTM P/E; up to 12 for historical EPS CAGR if consensus unavailable.

Tool Allowlist

See frontmatter allowed_tools — 4 tools. get_realtime_quote for current price + PE (TTM). search_earnings_calendar for consensus EPS and long-term growth estimates. search_xbrl_facts for historical EPS to compute CAGR. search_companies for peer identification.

Protocol

Step-by-step execution detail is in references/methodology.md.

PEG Interpretation (Peter Lynch Framework)

PEG Range Rating Investment Implication
< 0.5 Deeply Undervalued Growth vastly exceeds valuation; investigate for hidden risks
0.5 – 1.0 Undervalued Classic Lynch buy zone; growth justifies the multiple
1.0 – 1.5 Fairly Valued Growth and valuation in equilibrium
1.5 – 2.0 Premium Market paying up for growth; needs above-consensus execution
> 2.0 Overvalued Growth insufficient to justify current multiple
Negative N/A Negative earnings — PEG not meaningful; use revenue-based metrics

Output File

Write the final deliverable to {ticker}/{YYYY-MM-DD_HHMM}_peg-valuation_{affix}.md.

Output Structure

The deliverable is a structured markdown report written to the path in ## Output File. Full section-by-section template (headings, tables, and field definitions) lives in references/output-structure.md. Required elements:

  1. Executive Summary — headline conclusions (≤200 words).
  2. Core analysis sections — per this skill's methodology and analyst modes.
  3. Data classification — tag findings [FACT] / [DEDUCTED] / [VIEW] per contracts/snapshot-synthesis.md.
  4. Coverage Gaps & Citations — inline /v/ citations are PRIMARY (immediately after each fact); the bottom Citations section is a non-duplicative roll-up index.
  5. Output frontmatter — emit the FR-090 structured block per contracts/output-frontmatter-schema.md.

Citations & memory: follow contracts/citation-and-memory.md — ≥1 citation per 200 words; every material fact, table row, and metric is immediately followed by its inline clickable https://agentii.ai/v/{ticker}/{citation_id}/{N} link; a bottom Citations section provides a non-duplicative roll-up index; the closing TUI reply includes a compact Key Citations list (headline 5–10 facts) of clickable /v/ URLs; and append the run to agentii.md per contracts/agentii-md-schema.md.

Tool Fallbacks

Per-tool failure modes and fallback actions are tabulated in references/tool-fallbacks.md.

Memory & Snapshot

  • Memory load (pre-flight): load prior workspace context for the ticker before retrieval — see contracts/memory-load.md.
  • Structured output frontmatter: emit the FR-090 block (key_metrics, conclusions, facts_count, deducted_count, views_count, citation_count) per contracts/output-frontmatter-schema.md.
  • Snapshot synthesis: after writing the deliverable, update the two-tier snapshot and classify findings as [FACT]/[DEDUCTED]/[VIEW] — see contracts/snapshot-synthesis.md.
  • Session archival: record the run under sessions/{YYYY-MM-DD}/ and update sessions/INDEX.md per contracts/session-format.md.

Final Summary (TUI)

End the closing chat reply with a compact Key Citations list (headline 5–10 facts), each a clickable https://agentii.ai/v/{ticker}/{citation_id}/{N} link, so the user can cmd+click straight to the exact SEC page. See contracts/citation-and-memory.md.

Error Handling

Failure Mode Detection Action User-Facing Message
Missing data No consensus or historical EPS Halt; cannot compute growth rate "Insufficient earnings data to compute growth rate for {ticker}."
Negative earnings PE (TTM) < 0 Compute only revenue-based metrics; flag PEG as N/A "PEG not applicable — {ticker} has negative earnings."
Zero growth CAGR ≈ 0% PEG = ∞; flag as "no growth" case "Zero historical EPS growth — PEG effectively infinite."
MCP unreachable Preflight probe fails Halt "agentii data plane unreachable; check connection."