PEG Valuation
Peter Lynch PEG (Price/Earnings to Growth) methodology. PEG = P/E Ratio ÷ Earnings Growth Rate (%). Growth-adjusted valuation that answers: "Is this stock's growth justifying its multiple?"
Preflight
Run canonical pre-flight per contracts/preflight.md.
**get_realtime_quote availability **: If get_realtime_quote is not yet deployed, prompt user for current stock price. PE numerator from search_earnings_calendar (NTM consensus EPS × current price = PE) as fallback.
Include the X-Agentii-Trace header on every tool call per contracts/x-agentii-trace-header.md — carry the _run_id from your first tool result and name yourself (and your parent, if you were spawned).
Triggers
- PEG valuation for {ticker}
- compute PEG ratio {ticker}
- Peter Lynch PEG {ticker}
- growth-adjusted valuation {ticker}
- is {ticker} undervalued by PEG
- PEG analysis {ticker}
- price earnings growth {ticker}
- compare PEG across peers
- {ticker} PEG vs sector
- growth at reasonable price {ticker}
Defaults
| Parameter | Default | Notes |
|---|---|---|
| growth_source | consensus | consensus estimates preferred; fallback to historical CAGR |
| include_peers | true | Sector PEG comparison |
| lookback_years | 3 | Historical CAGR computation window |
Methodology
Retrieval Scope
structured_only — PEG uses XBRL earnings data + real-time price + earnings calendar for growth estimates.
Retrieval Strategy
See contracts/retrieval.md for the canonical decision tree; skill-specific retrieval detail is in references/methodology.md.
Temporal Scope
Default: 4 fiscal quarters (max 12). PEG uses trailing 4 quarters for LTM P/E; up to 12 for historical EPS CAGR if consensus unavailable.
Tool Allowlist
See frontmatter allowed_tools — 4 tools. get_realtime_quote for current price + PE (TTM). search_earnings_calendar for consensus EPS and long-term growth estimates. search_xbrl_facts for historical EPS to compute CAGR. search_companies for peer identification.
Protocol
Step-by-step execution detail is in references/methodology.md.
PEG Interpretation (Peter Lynch Framework)
| PEG Range | Rating | Investment Implication |
|---|---|---|
| < 0.5 | Deeply Undervalued | Growth vastly exceeds valuation; investigate for hidden risks |
| 0.5 – 1.0 | Undervalued | Classic Lynch buy zone; growth justifies the multiple |
| 1.0 – 1.5 | Fairly Valued | Growth and valuation in equilibrium |
| 1.5 – 2.0 | Premium | Market paying up for growth; needs above-consensus execution |
| > 2.0 | Overvalued | Growth insufficient to justify current multiple |
| Negative | N/A | Negative earnings — PEG not meaningful; use revenue-based metrics |
Output File
Write the final deliverable to {ticker}/{YYYY-MM-DD_HHMM}_peg-valuation_{affix}.md.
Output Structure
The deliverable is a structured markdown report written to the path in ## Output File. Full section-by-section template (headings, tables, and field definitions) lives in references/output-structure.md. Required elements:
- Executive Summary — headline conclusions (≤200 words).
- Core analysis sections — per this skill's methodology and analyst modes.
- Data classification — tag findings
[FACT]/[DEDUCTED]/[VIEW]percontracts/snapshot-synthesis.md. - Coverage Gaps & Citations — inline
/v/citations are PRIMARY (immediately after each fact); the bottom Citations section is a non-duplicative roll-up index. - Output frontmatter — emit the FR-090 structured block per
contracts/output-frontmatter-schema.md.
Citations & memory: follow contracts/citation-and-memory.md — ≥1 citation per 200 words; every material fact, table row, and metric is immediately followed by its inline clickable https://agentii.ai/v/{ticker}/{citation_id}/{N} link; a bottom Citations section provides a non-duplicative roll-up index; the closing TUI reply includes a compact Key Citations list (headline 5–10 facts) of clickable /v/ URLs; and append the run to agentii.md per contracts/agentii-md-schema.md.
Tool Fallbacks
Per-tool failure modes and fallback actions are tabulated in references/tool-fallbacks.md.
Memory & Snapshot
- Memory load (pre-flight): load prior workspace context for the ticker before retrieval — see
contracts/memory-load.md. - Structured output frontmatter: emit the FR-090 block (
key_metrics,conclusions,facts_count,deducted_count,views_count,citation_count) percontracts/output-frontmatter-schema.md. - Snapshot synthesis: after writing the deliverable, update the two-tier snapshot and classify findings as
[FACT]/[DEDUCTED]/[VIEW]— seecontracts/snapshot-synthesis.md. - Session archival: record the run under
sessions/{YYYY-MM-DD}/and updatesessions/INDEX.mdpercontracts/session-format.md.
Final Summary (TUI)
End the closing chat reply with a compact Key Citations list (headline 5–10 facts), each a clickable https://agentii.ai/v/{ticker}/{citation_id}/{N} link, so the user can cmd+click straight to the exact SEC page. See contracts/citation-and-memory.md.
Error Handling
| Failure Mode | Detection | Action | User-Facing Message |
|---|---|---|---|
| Missing data | No consensus or historical EPS | Halt; cannot compute growth rate | "Insufficient earnings data to compute growth rate for {ticker}." |
| Negative earnings | PE (TTM) < 0 | Compute only revenue-based metrics; flag PEG as N/A | "PEG not applicable — {ticker} has negative earnings." |
| Zero growth | CAGR ≈ 0% | PEG = ∞; flag as "no growth" case | "Zero historical EPS growth — PEG effectively infinite." |
| MCP unreachable | Preflight probe fails | Halt | "agentii data plane unreachable; check connection." |
