company_valuation__terminal_value_gordon

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

No annotations are provided, and the description fails to disclose that it assumes perpetual constant growth, requires a discount rate, or any other behavioral context.

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

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

The description is extremely short but fails to convey any useful information, making it under-specified rather than concise.

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

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

For a financial computation tool with no output schema, the description provides no context on the formula, assumptions, or return format, leaving an AI agent with insufficient information to use it correctly.

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

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

Input schema has 3 parameters with no descriptions, and the tool description adds no meaning beyond their names ('final_fcf', 'wacc', 'g').

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

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

The description is a tautology, repeating the tool name without specifying that it computes the Gordon growth model terminal value.

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

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

No guidance on when to use this tool versus alternatives like terminal_value_exit_multiple, or how it differs from other valuation methods.

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