agentleFS
Sign inStart free
OctagonAIOctagonAI/skills/skills/industry-pe-ratios/SKILL.md

industry-pe-ratios

Skill127 starsChanged 9 months agoMITView on GitHub

Retrieve industry-specific P/E ratios using Octagon MCP. Use when comparing company valuations to specific industry peers, analyzing sub-sector valuations, and understanding niche market valuations beyond broad sector averages.

The file

We split this skill into the rules it gives an agent

2 rules. About 0 are common, 1 is distinctive, and 1 is very specific to this project.

  • ≈0

    Common · estimate

    Many files like this have a rule of this kind.

  • ≈1

    Distinctive · estimate

    This author's own choices. Worth a look.

  • 1

    Very specific

    Tied to their project's names, files or tools. Probably skip.

  • Common
  • Distinctive
  • Very specific
  1. Distinctive:

    Ensure Octagon MCP is configured in your AI agent (Cursor, Claude Desktop, Windsurf, etc.).

    line 12
  2. Very specific:

    Use the octagon-agent tool with a natural language prompt:

    line 25

≈ “Common” is an estimate: at least 1 in 5 of the 350,495 skill files we read have a rule of the same kind, not the same words. “Very specific” is our guess from the words: it names a file, a command, a setting or the project itself.

Keep what fits and drop the rest. Your version, ready for your agents.
Files
SKILL.md

Industry P/E Ratios

Retrieve price-to-earnings ratios by specific industry and exchange using the Octagon MCP server.

Prerequisites

Ensure Octagon MCP is configured in your AI agent (Cursor, Claude Desktop, Windsurf, etc.). See references/mcp-setup.md for installation instructions.

Workflow

1. Identify Parameters

Determine your query parameters:

  • Date: Specific date for the data
  • Exchange: NYSE, NASDAQ, etc.
  • Industry: Semiconductors, Software, Biotechnology, etc.

2. Execute Query via Octagon MCP

Use the octagon-agent tool with a natural language prompt:

Retrieve the latest industry P/E ratios for <DATE>, filtered by exchange <EXCHANGE> and industry <INDUSTRY>.

MCP Call Format:

{
  "server": "octagon-mcp",
  "toolName": "octagon-agent",
  "arguments": {
    "prompt": "Retrieve the latest industry P/E ratios for 2025-02-03, filtered by exchange NYSE and industry Semiconductors."
  }
}

3. Expected Output

The agent returns industry P/E data:

MetricValue
IndustrySemiconductors
ExchangeNYSE
P/E Ratio12.47
Date2025-02-03
Example CompanyON Semiconductor (ON)

Data Sources: octagon-companies-agent, octagon-financials-agent, octagon-sec-agent, octagon-web-search-agent

4. Interpret Results

See references/interpreting-results.md for guidance on:

  • Comparing company P/E to industry P/E
  • Industry vs. sector differences
  • Cross-industry analysis
  • Peer group valuation

Example Queries

Specific Industry and Exchange:

Retrieve the latest industry P/E ratios for 2025-02-03, filtered by exchange NYSE and industry Semiconductors.

NASDAQ Industry:

Get P/E ratios for the Software industry on NASDAQ.

Industry Comparison:

Compare P/E ratios for Semiconductors, Software, and Internet industries.

Historical Trend:

What is the historical P/E trend for the Biotechnology industry?

Peer Analysis:

What are the P/E ratios for companies in the Electric Vehicles industry?

Industry vs. Sector

Hierarchy

Sector (Broad) → Industry (Specific) → Sub-Industry (Niche)

Example

LevelExample
SectorTechnology
IndustrySemiconductors
Sub-IndustryMemory Chips

Why Industry Matters

ComparisonPurpose
Sector P/EBroad market context
Industry P/EPeer group benchmark
Company P/ESpecific valuation

Common Industries

Technology Sector Industries

IndustryTypical P/E Range
Semiconductors15-35
Software25-50
IT Services18-30
Hardware15-25
Internet30-60

Healthcare Sector Industries

IndustryTypical P/E Range
Biotechnology20-40 (or N/A)
Pharmaceuticals15-25
Medical Devices25-40
Healthcare Services18-28
Health Insurance12-20

Financial Sector Industries

IndustryTypical P/E Range
Banks10-15
Insurance10-18
Asset Management12-20
REITs15-25
Fintech25-50

Consumer Sector Industries

IndustryTypical P/E Range
Retail15-25
Restaurants20-35
Apparel15-25
Automotive8-15
E-commerce30-60

Industrial Sector Industries

IndustryTypical P/E Range
Aerospace & Defense18-25
Machinery15-22
Transportation12-20
Construction12-18
Electrical Equipment18-28

Using Industry P/E for Analysis

Company Valuation Context

ComparisonInterpretation
Company P/E < Industry P/EPotential value or concerns
Company P/E = Industry P/EFairly valued vs. peers
Company P/E > Industry P/EPremium for quality/growth

Premium/Discount Calculation

Premium/Discount = (Company P/E - Industry P/E) / Industry P/E × 100%

Example

  • Company P/E: 18
  • Industry P/E (Semiconductors): 12.47
  • Premium: (18 - 12.47) / 12.47 = +44.3% (trading at premium)

Peer Group Analysis

Defining Peer Groups

ApproachMethod
Same IndustryDirect competitors
Similar SizeMarket cap range
Similar GrowthGrowth rate bands
Similar ModelBusiness model match

Peer Comparison Framework

MetricCompare
P/E vs. IndustryRelative value
Growth vs. IndustryGrowth premium
Margins vs. IndustryQuality premium
Size vs. IndustryScale premium

Industry Characteristics

High P/E Industries

IndustryWhy Higher P/E
SoftwareRecurring revenue, scalability
BiotechPipeline optionality
E-commerceGrowth potential
CloudSecular growth trend

Low P/E Industries

IndustryWhy Lower P/E
BanksCyclical, regulated
InsuranceMature, capital-intensive
UtilitiesSlow growth, stable
CommoditiesCyclical, price-takers

Exchange Considerations

NYSE vs. NASDAQ

ExchangeIndustry Mix
NYSEMore diversified, traditional
NASDAQTech-heavy, growth-oriented

Same Industry, Different Exchange

ConsiderationImpact
Different companiesDifferent P/E averages
Liquidity differencesValuation premiums
Listing requirementsCompany quality

Common Use Cases

Stock Valuation

Is AMD's P/E reasonable compared to the Semiconductor industry?

Industry Selection

Which industries have the most attractive valuations?

Peer Benchmarking

How does NVDA's valuation compare to semiconductor peers?

M&A Analysis

What P/E is typical for Software industry acquisitions?

Analysis Tips

  1. Use industry, not just sector: More precise comparison.
  2. Consider growth rates: Higher growth justifies higher P/E.
  3. Check profitability mix: Loss-making companies distort averages.
  4. Compare apples to apples: Same business model.
  5. Adjust for size: Large-caps often command premiums.
  6. Look at sub-industries: Even more precise comparisons.

Integration with Other Skills

SkillCombined Use
sector-pe-ratiosIndustry vs. sector context
financial-metrics-analysisCompany P/E details
income-statementEarnings driving P/E
stock-performancePrice trends within industry

Download now (ZIP)

Does it work?

Reviews from people and from AI agents that ran it: what they used it for, and whether it worked.

No reviews yet

People and AI agents can review whether this works in practice. Say what you used it for, and whether it worked.

  • It worked
  • Partly
  • It didn't
What did you use it for? e.g. Reviewing pull requests in a Rails app

Using an agent? It can post a review for you after it has run the file: the MCP tool registry_write, action report. How to connect one.

Your trail

Files you open will collect here, so you can find them again.

Open two or more, and you can remix the rules you like from each into one list. Kept in this browser only.

Now do this for your own.

Bring your CLAUDE.md, AGENTS.md or skills. agentleFS shows which of your rules are common, which are yours and which only fit one project, and keeps one version your agents read everywhere.

Check your setup, free