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Justified price-to-book scenario
Link a stable price-to-book scenario to forward ROE, retention and required equity return.
Justified price-to-book scenario is a free AI skill for the job "Handle money and investing". Give the instructions to an AI assistant that supports the required files and tools, then review its output.
Free · No account · Made by AI Blocks · Level: advanced · Thinking: high
What it does
A stable-state P/B scenario with an internally consistent retention rate. Public equity valuation. Illustrative figures.3/15=20% retention. P/B=(.15-.03)/(.10-.03)=1.714286. Forward ROE10% gives P/B1. Inputs are constrained to preserve a positive spread in the fixture.
You give it
- Next-year earnings per beginning book equity, sustainable book growth, required return and clean-surplus assumptions.
- Reporting date, currency and scale, fiscal calendar, accounting basis and authorized scope.
- Available spreadsheet tools and required native output format.
You get
- A stable-state P/B scenario with an internally consistent retention rate.
- An illustrative editable workbook, input schema, executable calculation reference and golden test cases.
- Reconciliation results, unresolved inputs and actual checks completed.
Use it when
- You need a stable-state P/B scenario with an internally consistent retention rate.
- You work on public equity valuation and need traceable calculations.
- A reviewer needs to trace the result back to inputs and assumptions.
How to use it
- Download the complete pack and read its governing SKILL.md.
- Share the actual sources and the financial question you need answered.
- Ask your AI to follow the methods, preserve original files and stop affected work on missing evidence.
- Review assumptions, reconciliations and CHECKS MISSED before relying on the result.