company-classification-routing

Classifies companies and routes them to the correct valuation engine and constraint set.

Updated Sep 9, 2026
One-click install
npx skills add https://github.com/lyndonkl/hermesworld --skill company-classification-routing-lyndonkl
Or copy as Structured Prompt for Agent▼
Please help me install this Agent Skill.
Skill: company-classification-routing
Source: https://github.com/lyndonkl/hermesworld/tree/main/packages/business-narrative-analyst/skills/corporate-finance/company-classification-routing
Command: npx skills add https://github.com/lyndonkl/hermesworld --skill company-classification-routing-lyndonkl

SYSTEM DOCUMENTATION & REQUIREMENTS

💡 This Skill includes references (resource) components.

What problem does it solve? Standard valuation machinery silently produces confident but wrong numbers when pointed at banks, pre-revenue startups, distressed firms, or cyclical companies at a cycle extreme. This Skill converts what is knowable about a company into an explicit route — one primary valuation engine, overlays, an ordered pipeline, and a list of forbidden methods — before any valuation begins. ## Core Features & Use Cases - Signal extraction and gating: Computes sector type, life-cycle stage, earnings status, leverage, distress markers, and other signals from financial statements, then runs sequential gates (S2–S6) to select one of sixteen branches B1–B16. - Constraint compilation: Emits a machine-readable classification.json with hard constraints such as no-fcff-valuation for banks or require-failure-probability for distressed firms, enforced downstream by the valuation critic. - Combination rules: Resolves multi-branch companies deterministically with precedence rules, mutually exclusive pairs, and multiplicative probability composition. - Use Case: Before valuing a loss-making emerging-market bank, run the routing pipeline to produce a classification artifact that mandates an FCFE-to-regulatory-capital engine, an exposure-weighted equity risk premium, and an equity-wipeout probability — and forbids any FCFF or enterprise-multiple approach. ## Quick Start Classify this company using its financial statements and mandate, then write the classification.json route and diagnosis.md reasoning for the valuation team.

Frequently Asked Questions about company-classification-routing

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

FAQPage Schema
How do I choose the right valuation model for a difficult company?▼

Compute the S1 signals from the financial statements, then run the gates in order: sector gate first, then ownership and transaction, then life-cycle and earnings, then survival. The gates select exactly one engine branch such as revenue-driven for young firms or dividend discount for banks.

How do I value a bank or financial service firm?▼

Financial service firms route to branch B5, which forbids FCFF, WACC, and enterprise multiples because debt is raw material rather than financing. Value equity directly using a dividend discount model, FCFE to regulatory capital, or an excess-return model on book equity.

When should I normalize earnings versus use a revenue-driven valuation?▼

Normalization is legitimate only when losses are temporary, with evidence like a sector downturn, peers showing the same pattern, and prior normal margins. Structural, life-cycle, or leverage-driven losses route to the revenue-driven B1 branch instead, and combining both is a hard error.

Can this handle companies that fit multiple categories at once?▼

Yes, overlays like intangible-heavy, emerging-market, and cross-holdings compose on top of one engine branch. Precedence rules pick the single engine, mutually exclusive pairs are hard errors, and probability-weighted adjustments compose multiplicatively with each risk charged exactly once.

What are the limitations of standard DCF for distressed companies?▼

A DCF assumes survival to stable growth, so it overstates value when failure is possible, and raising the discount rate does not fix this. The correct repair is probability weighting: going-concern value times survival probability plus distress proceeds times failure probability.