calculate_dcf

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

Annotations indicate read-only, non-destructive, idempotent behavior. The description adds context by detailing the default estimation logic (e.g., FCF proxy as EPS×Shares×0.8), which goes beyond annotations.

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?

Three sentences efficiently convey purpose, inputs, defaults, and outputs. Front-loaded with the main purpose. No redundant information.

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?

Covers all essential aspects: what the tool does, what parameters are used, how defaults work, and what the output includes (enterprise value, intrinsic value, margin of safety). No output schema, but description adequately describes outputs.

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 100% description coverage for all 10 parameters. The description adds value by explaining how defaults are derived when not provided, but the schema already handles individual parameter meaning well.

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?

Description clearly states it is a DCF valuation calculator that computes enterprise value and intrinsic value per share using FCF, growth rate, discount rate, and terminal growth. It distinguishes itself from siblings by being the only dedicated DCF tool.

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?

It explains that calculations are based on user inputs and that default values are estimated from the database if not provided. While it doesn't explicitly say when not to use or compare to alternatives, the context makes its purpose clear.

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