Fundamental Analysis
This skill has been merged into
stock-eval. Use/us-stock-analysis:stock-evalfor comprehensive fundamental + quality + valuation analysis.
Quick Reference — Key Ratios
| Ratio | Formula | What It Measures |
|---|---|---|
| P/E (Price-to-Earnings) | Market Price / EPS | How much investors pay per dollar of earnings; compare to peers and history |
| P/B (Price-to-Book) | Market Price / Book Value per Share | Premium over net asset value; useful for financials and asset-heavy businesses |
| P/S (Price-to-Sales) | Market Cap / Revenue | Valuation relative to revenue; useful when earnings are negative or depressed |
| EV/EBITDA | Enterprise Value / EBITDA | Capital-structure-neutral earnings multiple; standard M&A and cross-sector benchmark |
| ROE (Return on Equity) | Net Income / Shareholders' Equity | Profitability relative to equity book value; decompose with DuPont for quality assessment |
| ROIC (Return on Invested Capital) | NOPAT / Invested Capital | True economic return on all capital deployed; compare to WACC to assess value creation |
| Current Ratio | Current Assets / Current Liabilities | Short-term liquidity; >1.5x generally healthy; <1.0x signals potential liquidity stress |
| D/E (Debt-to-Equity) | Total Debt / Shareholders' Equity | Financial leverage; higher ratio = more risk but also more return amplification |
For the full analysis framework — income statement line-item breakdown, working capital cycle, DuPont decomposition, cash conversion cycle, Porter's Five Forces, Piotroski F-Score, DCF, ROIC/WACC, and risk matrix — use /us-stock-analysis:stock-eval.
Standard Signal Output
All analysis concludes with this standardized block:
## Thesis Invalidation After delivering the analysis signal, specify what would reverse it: **If signal is BULLISH — thesis breaks if:** - revenue growth decelerates below 5% for 2 consecutive quarters AND gross margin contracts >200bps - [One or two more triggers drawn from this analysis's own drivers, each with a threshold] **If signal is BEARISH — thesis breaks if:** - revenue reaccelerates >15% AND margin expansion resumes - [One or two more triggers drawn from this analysis's own drivers, each with a threshold] **Re-run this analysis when:** - [ ] Next earnings release - [ ] Price moves ±15% from current level - [ ] 60 days have elapsed - [ ] Material news event (acquisition, leadership change, regulatory decision) ╔══════════════════════════════════════════════╗ ║ INVESTMENT SIGNAL ║ ╠══════════════════════════════════════════════╣ ║ Signal: BULLISH / NEUTRAL / BEARISH ║ ║ Confidence: HIGH / MEDIUM / LOW ║ ║ Horizon: SHORT / MEDIUM / LONG-TERM ║ ║ Score: X.X / 10 ║ ╠══════════════════════════════════════════════╣ ║ Action: BUY / HOLD / SELL ║ ║ Conviction: STRONG / MODERATE / WEAK ║ ╚══════════════════════════════════════════════╝
Score Guide: 8.0–10.0 Strongly Bullish | 6.0–7.9 Moderately Bullish | 4.0–5.9 Neutral | 2.0–3.9 Moderately Bearish | 0.0–1.9 Strongly Bearish Confidence: HIGH (strong data, clear signals) | MEDIUM (mixed signals) | LOW (limited data, conflicting signals) Horizon: SHORT-TERM (1 week–3 months) | MEDIUM-TERM (3 months–1 year) | LONG-TERM (1+ years)
Disclaimer: Educational analysis only. Not financial advice.


