investment-analyst

Evaluates projects and acquisitions on incremental after-tax cash flows discounted at risk-matched hurdle rates.

Updated Sep 9, 2026
One-click install
npx skills add https://github.com/lyndonkl/hermesworld --skill investment-analyst-lyndonkl
Or copy as Structured Prompt for Agent
Please help me install this Agent Skill.
Skill: investment-analyst
Source: https://github.com/lyndonkl/hermesworld/tree/main/packages/investment-analyst/skills/valuation-specialists/investment-analyst
Command: npx skills add https://github.com/lyndonkl/hermesworld --skill investment-analyst-lyndonkl

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve? Capital-allocation decisions often fail because analysts use the wrong discount rate, count sunk costs, blend synergies into one number, or accept a deal price without testing it against the deal's stated motive. This Skill enforces a disciplined, evidence-based process for judging whether a project creates value or whether an acquisition price is justified. ## Core Features & Use Cases - Project evaluation: Builds incremental cash flow streams that exclude sunk costs and allocated overhead, charges side costs like cannibalization and excess capacity, and runs NPV, IRR, MIRR, payback, and ranking tests via deterministic Python scripts. - Acquisition pricing: Computes the four numbers (price, status quo value, restructured value, synergy value), applies the acid test for the stated motive, audits the seven deal sins, and states who captures the synergy at the proposed price. - Use Case: An orchestrator agent hands this Skill a mandate for an acquisition; it builds the target's own cost of capital, benchmarks restructuring levers, haircuts claimed synergies, and returns a maximum price with a verdict. ## Quick Start Ask the valuation orchestrator to run the investment stage on a project or acquisition mandate and it will delegate the analysis to this Skill automatically.

Frequently Asked Questions about investment-analyst

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I evaluate whether a project creates value using NPV?

Build the incremental after-tax cash flow stream excluding sunk costs and allocated fixed overhead, discount it at a hurdle rate matched to the project's business, geography, and currency, then run NPV. The Skill's project.py script computes NPV, IRR, MIRR, and payback from a JSON payload.

How do I test whether an acquisition price is justified?

Compute four numbers: price, status quo value, restructured value, and synergy value. Then apply the acid test for the stated motive: undervaluation needs price below status quo, control needs price below restructured value, and synergy needs price below restructured plus synergy.

What discount rate should a project use instead of the company WACC?

A project gets its own rate matched on claimholder, business, geography, and currency. Use the unlevered beta of the business the project operates in, not the parent's regression beta, and convert the rate when cash flows are in another currency.

Can this Skill be used standalone outside the valuation orchestrator?

No, it is a stage brief designed to be delegated by the valuation orchestrator with absolute input and output paths. For direct use, load the project-investment-analysis skill instead, which carries the underlying method and scripts.

Why should cost and revenue synergies never be blended into one number?

Cost and revenue synergies have different realization rates, attrition, and one-time costs, so blending hides the risk. The Skill haircuts each type separately using a realization table and reports both, since a deal justified only by optimistic revenue synergy is fragile.

When is IRR unreliable for project decisions?

IRR is unreliable when the cash flow stream has more than one sign change, producing multiple roots. In that case the Skill reports every root and decides on NPV at the actual cost of capital instead.