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company_valuation__terminal_value_exit_multiple

Calculate terminal value using the exit multiple method. Input final EBITDA and multiple to estimate company residual value.

Instructions

[company-valuation] terminal_value_exit_multiple

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
multipleYes
final_ebitdaYes
Behavior1/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

No annotations exist, and the description fails to disclose any behavioral traits. It does not specify whether the tool calculates or returns anything.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness1/5

Is the description appropriately sized, front-loaded, and free of redundancy?

While short, the description is under-specified and provides no information. It does not earn its place as it adds no value.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness1/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

The tool has no output schema and no parameter descriptions. The description is insufficient for an agent to correctly select or invoke the tool.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters1/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema description coverage is 0% and the description adds no meaning to the parameters 'final_ebitda' or 'multiple', leaving their purpose unclear.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose1/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description is a tautology, restating the name. It provides no verb or resource, offering no clarity on what the tool computes beyond the name itself.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines1/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

No usage guidance is given. The description does not distinguish when to use this vs. sibling terminal value methods like terminal_value_gordon.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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