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show_valuation

Compute valuation metrics (PEG ratio, Price/Sales, FCF yield) from SEC filings to determine if a stock is overvalued or cheap.

Instructions

Valuation deep-dive for a single ticker: PEG ratio, Price/Sales, and FCF yield — computed from 8 quarters of SEC filings. Use when the user asks 'is X overvalued / cheap?', 'what's the PEG?', 'how does the valuation look?'. Requires Finnhub key. Market cap and PE come from the price cache; revenue, EPS, operating cash flow, and capex come from XBRL filings.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
tickerYesStock ticker symbol (e.g. AAPL)
Behavior4/5

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

With no annotations, the description reveals data sources (price cache, XBRL filings) and the requirement for a Finnhub key. It adequately discloses the tool's behavior for a read-only operation, though it could mention if any state changes occur.

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

Conciseness5/5

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

The description is three sentences, front-loaded with purpose, and each sentence provides essential information without redundancy.

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

Completeness5/5

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

For a simple tool with a single parameter and no output schema, the description covers purpose, metrics, data sources, usage context, and prerequisites (Finnhub key), making it complete.

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

Parameters3/5

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

Schema coverage is 100% for one parameter (ticker). The description adds context that the ticker is for a single stock, but this adds little beyond the schema description 'Stock ticker symbol (e.g. AAPL)'. Baseline score of 3 is appropriate.

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

Purpose5/5

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

The description clearly states it computes valuation metrics (PEG, Price/Sales, FCF yield) from 8 quarters of SEC filings for a single ticker, distinguishing it from siblings like show_earnings or show_financials.

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

Usage Guidelines4/5

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

It explicitly lists use cases ('is X overvalued?', 'what's the PEG?', 'how does the valuation look?') and mentions the Finnhub key requirement, but does not explicitly state when not to use it or suggest alternatives.

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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