# valuation-analysis

> Evaluate company valuation using multiple methods including P/E, P/S, EV/EBITDA, DCF analysis. Use when determining if a stock is fairly valued, undervalued, or overvalued.

- Author: ANazym
- Repository: AltbridgeInc/apex-os
- Version: 20251115215644
- Stars: 0
- Forks: 0
- Last Updated: 2026-02-08
- Source: https://github.com/AltbridgeInc/apex-os
- Web: https://mule.run/skillshub/@@AltbridgeInc/apex-os~valuation-analysis:20251115215644

---

---
name: valuation-analysis
description: Evaluate company valuation using multiple methods including P/E, P/S, EV/EBITDA, DCF analysis. Use when determining if a stock is fairly valued, undervalued, or overvalued.
---

# Valuation Analysis

## Overview

Evaluate company valuation using multiple methods to determine fair value and identify undervalued or overvalued investment opportunities.

## Valuation Methods

### 1. Relative Valuation (Multiples)
- Calculate P/E ratio: Price / Earnings Per Share
- Calculate P/S ratio: Price / Sales Per Share
- Calculate EV/EBITDA: Enterprise Value / EBITDA
- Calculate P/B ratio: Price / Book Value Per Share
- Compare to industry peers and historical averages

### 2. Discounted Cash Flow (DCF)
- Project free cash flows (5-10 years)
- Determine appropriate discount rate (WACC)
- Calculate terminal value
- Discount all cash flows to present value
- Compare intrinsic value to current price

### 3. PEG Ratio Analysis
- Calculate PEG: P/E / Growth Rate
- Interpret: <1 potentially undervalued, >1 potentially overvalued
- Compare to industry benchmarks

## Valuation Scoring

**Score 9-10 (Deep Value):**
- Trading at >50% discount to intrinsic value
- P/E significantly below historical/peer average
- Strong margin of safety

**Score 7-8 (Attractive):**
- Trading at 30-50% discount to intrinsic value
- P/E moderately below average
- Reasonable margin of safety

**Score 5-6 (Fair Value):**
- Trading near intrinsic value
- P/E in line with historical/peer average
- Limited margin of safety

**Score 3-4 (Expensive):**
- Trading at 20-40% premium to intrinsic value
- P/E above average
- No margin of safety

**Score 0-2 (Severely Overvalued):**
- Trading at >40% premium to intrinsic value
- P/E significantly inflated
- High downside risk

## Output Format

Provide valuation score (0-10) with intrinsic value estimate, current valuation multiples, and margin of safety calculation.