longbridge-valuation-methodology

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

1. Identify the company's industry and growth stage to select the appropriate method.
2. Fetch current valuation multiples: run longbridge valuation <SYMBOL> --format json (verify flags with --help).
3. Fetch industry context: run longbridge industry-valuation <SYMBOL> --format json.
4. Fetch income statement for margin/growth inputs: run longbridge financial-report <SYMBOL> --kind IS --format json.
5. 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

# 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:

1. Recommended valuation method(s) with rationale.
2. Current multiple vs historical percentile vs industry median.
3. Fair-value range under each method with key assumptions.
4. 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