stock-analyzer

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

1. Fetch Stock Data: Use yahoo-datasets_get_stock_info to retrieve current stock information
2. Fetch Financials: Use yahoo-datasets_get_financial_statement for income_stmt and balance_sheet
3. 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:

1. Call yahoo-datasets_get_stock_info with ticker="AAPL"
2. Call yahoo-datasets_get_financial_statement with ticker="AAPL", financial_type="income_stmt"
3. Call yahoo-datasets_get_recommendations with ticker="AAPL", recommendation_type="recommendations"
4. Calculate discount metrics and provide verdict

Screening Multiple Stocks

When screening multiple tickers:

1. Fetch data for all tickers in parallel
2. Calculate discount score for each: score = (1/PE) + (1/PB) + ROE - DebtEquity
3. Rank by score descending
4. Present top opportunities with key metrics