Agent Skills: relative-valuation-toolkit

Prices a company against peers and the market with multiples — builds PE, PEG, PBV, EV/EBITDA, EV/EBIT, EV/Sales and EV/Invested Capital with the numerator/denominator consistency rule enforced, computes peer medians and quartiles, fits an ordinary-least-squares regression of a multiple on its companion variables for a sector or the whole market, reports predicted versus actual under and over valuation, and derives the intrinsic multiple from DCF fundamentals. Prices a conglomerate division by division with a sum of the parts, and values cross-holdings and minority interests. Bundles Damodaran's regional pricing regressions and multiple distributions. Use for relative valuation, comparable company analysis, trading comps, sector or market multiple regressions, justified multiples, PEG screens, sum-of-the-parts or break-up analysis, conglomerate discounts, cross-holdings and minority interests, or when asked whether a stock is cheap on its multiple.