longbridge-valuation-methodology

Original：🇺🇸 English

Translated

Valuation methodology framework covering absolute (DCF / DDM / SOTP) and relative (PE-Band / PB-ROE / EV-EBITDA / PS) approaches — when to use each, pros/cons, common pitfalls, and practical application with Longbridge data. Triggers: "估值方法", "估值方法论", "DCF", "DDM", "SOTP", "PE估值", "EV/EBITDA", "绝对估值", "相对估值", "估值框架", "估值方法論", "絕對估值", "相對估值", "valuation methodology", "DCF model", "DDM", "SOTP", "PE band", "EV EBITDA", "absolute valuation", "relative valuation", "valuation framework".

2installs

Sourcelongbridge/skills

Added on2026-05-13

NPX Install

npx skill4agent add longbridge/skills longbridge-valuation-methodology

SKILL.md Content

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longbridge-valuation-methodology

A structured framework for selecting and applying valuation methods to listed companies using Longbridge data — from quick relative multiples to full DCF/SOTP builds.

Response language: match the user's input language — Simplified Chinese / Traditional Chinese / English.

When to use

"如何给这家公司估值", "how do I value this company", "這家公司怎麼估值"
"DCF 和 PE 哪个更适合科技股", "when to use EV/EBITDA vs PE"
"SOTP 分部加总法怎么算", "how does sum-of-the-parts work"
"什么情况用 PB-ROE 框架", "when to apply PB-ROE valuation"
"PE-Band 估值图怎么看"

For current valuation snapshot + percentile, use

longbridge-valuation

. For a full DCF model, use

longbridge-dcf

.

Workflow

Identify the company's industry and growth stage to select the appropriate method.
Fetch current valuation multiples: run
```
longbridge valuation <SYMBOL> --format json
```
(verify flags with
```
--help
```
).

Fetch industry context: run

longbridge industry-valuation <SYMBOL> --format json

.

Fetch income statement for margin/growth inputs: run

longbridge financial-report <SYMBOL> --kind IS --format json

.

Apply the framework table below; explain selected method(s), assumptions, and output.

Valuation method selection guide

Scenario	Preferred method	Why
Stable earnings, mature company	PE-Band / PB	Simple; market-anchored
Asset-heavy (banks, insurance)	PB-ROE	Book value reflects true asset base
Capital-intensive (telecom, utilities)	EV/EBITDA	Strips out D&A and leverage differences
High-growth, pre-profit (biotech, SaaS)	PS / DCF	No earnings yet; revenue is the anchor
Conglomerate / multi-segment	SOTP	Each segment deserves its own multiple
Dividend-paying mature company	DDM	Intrinsic value from future dividends
Asset-rich company (property)	NAV	Book value adjusted to market prices

Method details

Relative valuation

PE-Band: Plot trailing/forward PE against 1–3 year historical mean ± 1SD. Buy signal when PE < mean - 1SD, stretched when > mean + 1SD. Use

longbridge valuation <SYMBOL> --format json

for historical percentile.

PB-ROE: High ROE justifies high PB. Plot PB vs ROE scatter across peers. Companies above the regression line are expensive; below are cheap. Fetch ROE from

longbridge financial-report <SYMBOL> --kind IS --format json

.

EV/EBITDA: Enterprise-value based; immune to capital structure. Use for cross-border comparisons. EV = market cap + net debt; EBITDA from IS + D&A line.

PS: Revenue multiple. Useful when earnings are negative. Compress to gross-profit multiple (EV/GP) for SaaS with different gross margins.

Absolute valuation

DCF: Project free cash flows → discount at WACC → add terminal value. Full workflow in

longbridge-dcf

.

DDM:

P = D₁ / (r - g)

. Best for high-dividend stocks (utilities, HK REITs). Inputs: next dividend (D₁), cost of equity (r), long-run dividend growth (g).

SOTP: Segment A value + Segment B value + Net cash − Holding discount. Requires segment-level revenue/EBIT from financial reports.

Common pitfalls

Using PE for loss-making companies — use PS or EV/Sales instead.
Anchoring WACC to an arbitrary 10% — verify Beta and risk-free rate.
Ignoring net debt in EV/EBITDA — EV must include all debt and minority interests.
Applying a single PE without cyclicality adjustment — use normalized or mid-cycle earnings.
SOTP double-counting — ensure holding-company cash is not counted twice.

CLI

bash

# Verify available flags first
longbridge valuation --help
longbridge industry-valuation --help
longbridge financial-report --help

# Fetch current multiples
longbridge valuation <SYMBOL> --format json

# Industry context
longbridge industry-valuation <SYMBOL> --format json

# Income statement for margin/growth
longbridge financial-report <SYMBOL> --kind IS --format json

Output

Present:

Recommended valuation method(s) with rationale.
Current multiple vs historical percentile vs industry median.
Fair-value range under each method with key assumptions.
Summary: cheap / fair / expensive verdict with caveats.

Error handling

Situation	简体回复	繁體回覆	English reply
`command not found: longbridge`	请安装 longbridge-terminal，或检查 MCP 配置。	請安裝 longbridge-terminal，或檢查 MCP 配置。	Install longbridge-terminal or check MCP config.
stderr: `not logged in`	请运行 `longbridge auth login` 。	請執行 `longbridge auth login` 。	Run `longbridge auth login` .
No valuation data for symbol	该标的暂无估值数据，请检查代码格式（如 AAPL.US）。	該標的暫無估值數據，請確認代碼格式。	No valuation data for this symbol; check the ticker format (e.g. AAPL.US).

Related skills

```
longbridge-dcf
```
— full discounted cash flow model
```
longbridge-valuation
```
— current snapshot + historical percentile
```
longbridge-peer-comparison
```
— cross-symbol multiple comparison
```
longbridge-fundamental
```
— revenue / EPS / margin KPIs

File layout

skills/longbridge-valuation-methodology/
└── SKILL.md

longbridge-valuation-methodology

NPX Install

Tags

SKILL.md Content

longbridge-valuation-methodology

When to use

Workflow

Valuation method selection guide

Method details

Relative valuation

Absolute valuation

Common pitfalls

CLI

Output

Error handling

Related skills

File layout