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value-investing-evaluation

A Claude skill that performs rigorous, mathematically consistent value investing analysis on any publicly traded stock.

Built to fix the most common failure modes of AI-generated stock analysis: reverse-engineered conclusions, inflated DCF valuations, and "margin of safety" that's really just a 10% discount.


What This Skill Does

Given a stock ticker, this skill runs a complete value investing workflow:

  1. Data Freshness Validation — Enforces use of the latest annual report. If the most recent filing isn't available, it flags the gap explicitly and estimates the valuation error.
  2. Moat Analysis — Identifies and rates moat sources (network effects, switching costs, intangibles, scale) with specific evidence, not just label-dropping.
  3. Assumption Disclosure Table — Every DCF input is listed with its source and justification before the calculation begins. No hidden assumptions.
  4. DCF Valuation — 10-year two-stage model, cross-validated with Gordon Growth Model. If the two methods diverge by more than 30%, the calculation is flagged for review.
  5. Scenario Analysis — Bear / base / bull cases with probability weighting when material risks (e.g. regulatory, geopolitical) are present.
  6. Honest Margin of Safety — Buy price = intrinsic value × 0.70. If the current price doesn't qualify, the skill says so directly instead of lowering the threshold to manufacture a buy signal.
  7. Buy / Hold / Sell Rules — Clear, trigger-based rules tied to fundamentals, not price action.

Key Rules Enforced

Rule Why It Matters
Must use latest annual report Using stale FCF data can skew intrinsic value by 50%+
DCF must be mathematically self-consistent Many AI analyses state inputs and conclusions that don't actually compute
Discount rate must include regional/regulatory risk premium Chinese and HK-listed stocks carry risks not captured by standard WACC
Margin of safety is a hard threshold (30%), not decorative A "30% discount" that's actually 8-12% provides no real downside protection
No normalized FCF without a specific filed basis Upward "normalization" is the most common way to inflate a valuation

Installation

  1. Download value-investing-evaluation.skill
  2. Double-click to install in Claude desktop app
  3. Trigger by saying things like:
    • "Analyze Tencent using value investing"
    • "Is NVIDIA undervalued? DCF analysis"
    • "价值投资分析腾讯"
    • "帮我算一下药明康德的内在价值"

Example Output Structure

━━━━━━━━━━━━━━━━━━━━━━━━━━
Data Freshness Check
━━━━━━━━━━━━━━━━━━━━━━━━━━
Analysis date: 2026-03-25
Latest available annual report: FY2025 (published 2026-03-19)
Report used: FY2025 ✅

One-line verdict: Wide moat | Fairly valued | No buy signal at current price

[Assumption & Estimate Disclosure Table]
[Moat Rating Table]
[Key Financials with Sources]
[DCF Calculation Table]
[Scenario Analysis]
[Margin of Safety Conclusion]
[Buy / Hold / Sell Rules]

Background

This skill was built after reviewing how a leading AI model analyzed Tencent's stock and found three critical errors in the same analysis:

  • FCF understated by ~50% (used 100B HKD vs actual ~200B HKD)
  • DCF inputs and conclusions were mathematically inconsistent (stated inputs implied ~221 HKD/share; conclusion was 550-600 HKD)
  • "Graham 30% rule" was cited but the suggested buy price was only 8-13% below the stated intrinsic value

This skill is designed to make those errors impossible by construction.


Limitations

  • Relies on web search for financial data — accuracy depends on search results
  • Does not replace professional financial advice
  • Qualitative moat judgments remain subjective even with a structured framework
  • Works best for large-cap stocks with multiple years of public financials

License

MIT

About

A Claude skill that enforces rigorous value investing analysis — mathematically consistent DCF, genuine 30% margin of safety, and honest buy/no-buy conclusions. No reverse-engineered targets, no inflated valuations.

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