| name | stock-analyzer |
| description | Analyze stocks to find discounted/undervalued opportunities using fundamental metrics |
Stock Discount Analyzer
Analyze stocks to identify undervalued or discounted investment opportunities using fundamental analysis.
When to Use
- User asks to find discounted or undervalued stocks
- User wants to analyze a stock for value investing
- User asks about stock valuation metrics
Analysis Process
- Fetch Stock Data: Use
yahoo-datasets_get_stock_info to retrieve current stock information
- Fetch Financials: Use
yahoo-datasets_get_financial_statement for income_stmt and balance_sheet
- Get Recommendations: Use
yahoo-datasets_get_recommendations to see analyst sentiment
Key Discount Indicators
Evaluate these metrics to determine if a stock is undervalued:
Valuation Ratios
- P/E Ratio: Compare to industry average. Below 15 may indicate undervaluation
- Forward P/E: Lower than trailing P/E suggests expected earnings growth
- P/B Ratio: Below 1.0 may indicate stock trades below book value
- PEG Ratio: Below 1.0 suggests undervaluation relative to growth
- Price to Sales (P/S): Compare to sector peers
Financial Health
- Current Ratio: Above 1.5 indicates good liquidity
- Debt to Equity: Below 0.5 is generally healthy
- Free Cash Flow: Positive and growing is preferred
- Return on Equity (ROE): Above 15% indicates efficiency
Discount Calculation
Discount % = ((Fair Value - Current Price) / Fair Value) * 100
Fair Value Methods:
1. Graham Number = sqrt(22.5 * EPS * Book Value)
2. DCF = Sum of discounted future cash flows
3. Peer Comparison = Average sector P/E * Company EPS
Output Format
Provide analysis in this structure:
STOCK ANALYSIS: [TICKER]
========================
Current Price: $XX.XX
52-Week Range: $XX.XX - $XX.XX
VALUATION METRICS:
- P/E Ratio: XX.X (Industry Avg: XX.X)
- Forward P/E: XX.X
- P/B Ratio: XX.X
- PEG Ratio: XX.X
FINANCIAL HEALTH:
- Current Ratio: XX.X
- Debt/Equity: XX.X
- ROE: XX.X%
- Free Cash Flow: $XXB
DISCOUNT ANALYSIS:
- Graham Number: $XX.XX
- Current vs Graham: XX% [discount/premium]
- Analyst Consensus: [Buy/Hold/Sell]
- Price Targets: Low $XX | Avg $XX | High $XX
VERDICT: [Undervalued/Fair Value/Overvalued]
Confidence: [High/Medium/Low]
Key Reasons:
1. [Reason 1]
2. [Reason 2]
3. [Reason 3]
What I do
To analyze AAPL for discount:
- Call
yahoo-datasets_get_stock_info with ticker="AAPL"
- Call
yahoo-datasets_get_financial_statement with ticker="AAPL", financial_type="income_stmt"
- Call
yahoo-datasets_get_recommendations with ticker="AAPL", recommendation_type="recommendations"
- Calculate discount metrics and provide verdict
Screening Multiple Stocks
When screening multiple tickers:
- Fetch data for all tickers in parallel
- Calculate discount score for each:
score = (1/PE) + (1/PB) + ROE - DebtEquity
- Rank by score descending
- Present top opportunities with key metrics