getLeveredDCFValuation

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

Annotations already indicate readOnlyHint and idempotentHint, so the description adds value by explaining the valuation method (levered DCF, post-debt). No contradictions. Does not detail return format, but adequate for a simple query tool.

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?

Two sentences that efficiently convey purpose and key differentiator (levered DCF). No fluff, front-loaded with the action verb 'Analyze'.

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 simple single-parameter tool with no output schema and low complexity, the description adequately explains the concept. However, it does not mention the structure of the return value, which would be helpful.

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?

Schema covers the only parameter (symbol) with description 'Stock symbol' (100% coverage). Description adds no extra parameter information beyond what the schema provides, so baseline 3 is appropriate.

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 clearly states 'Analyze a company’s value with the FMP Levered Discounted Cash Flow (DCF) API' and emphasizes 'post-debt company valuation', distinguishing it from siblings like getDCFValuation and calculateCustomDCF which are unlevered or custom.

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?

Implicitly suggests use when debt-adjusted valuation is needed, but lacks explicit comparison to alternatives like getDCFValuation or when not to use. The phrasing 'more accurate measure by accounting for its debt obligations' gives context but no direct guidance.

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