mcpField
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industry-pe-ratios

industry-pe-ratios

github.com/octagonaiData & databases130261 installsUpdated 21w ago
Repository

About industry-pe-ratios

A skill for retrieving industry price-to-earnings ratios by industry, exchange, and date through Octagon MCP. It supports valuation research and peer benchmarking across industries.

Key features

  1. 01Industry P/E ratio lookup
  2. 02Exchange and date filters
  3. 03Industry and peer comparisons
  4. 04Company-to-industry valuation context

Use cases

  1. 01Benchmark a company’s P/E against its industry
  2. 02Compare P/E ratios across industries
  3. 03Review peer valuations on an exchange

MCP support

Uses the Octagon MCP server’s `octagon-agent` tool with a natural-language prompt to retrieve industry P/E data.

Install

Copy the command and run it in a terminal.

$npx skills add https://github.com/octagonai/skills --skill industry-pe-ratios

After installing, type/industry-pe-ratiosin Claude Code to confirm it loaded.

Bundled files

References and scripts installed along with SKILL.md.

marketplace.json
README.md
references/
interpreting-results.md
mcp-setup.md

Details

From the project README

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

Comments

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