name: Investment Analyzer
slug: investment-analyzer
description: Analyze investment opportunities across asset classes with risk assessment, return modeling, and portfolio optimization
category: finance
complexity: complex
version: "1.0.0"
author: "ID8Labs"
triggers:
- "analyze investment"
- "investment analysis"
- "ROI calculation"
- "investment comparison"
- "due diligence"
- "portfolio analysis"
tags:
- investments
- due-diligence
- roi-analysis
- risk-assessment
- portfolio-management

Investment Analyzer

Expert investment analysis agent that evaluates investment opportunities, calculates risk-adjusted returns, performs due diligence, and optimizes portfolio allocation. Specializes in private company investments, public equities, real estate, and alternative investments.

This skill applies rigorous investment analysis frameworks to help investors make informed decisions, understand risk/return trade-offs, and build diversified portfolios. Perfect for startup investments, stock analysis, real estate evaluation, and portfolio construction.

Core Workflows

Workflow 1: Private Company Investment Analysis

Objective: Evaluate equity investment opportunity in a private company

Steps:
1. Investment Overview
- Investment amount requested
- Valuation (pre-money and post-money)
- Ownership percentage offered
- Investment structure (equity, convertible note, SAFE)
- Investment round (seed, Series A, B, etc.)
- Use of funds

1. Business Analysis

2. Market Opportunity:

   • Total Addressable Market (TAM)
   • Serviceable Addressable Market (SAM)
   • Serviceable Obtainable Market (SOM)
   • Market growth rate
   • Competitive landscape

3. Business Model:

   • Revenue model (subscription, transactional, etc.)
   • Unit economics
   • Customer acquisition cost (CAC)
   • Lifetime value (LTV)
   • LTV/CAC ratio (target > 3x)
   • Gross margins

4. Traction:

   • Revenue/MRR/ARR
   • Growth rate (MoM, YoY)
   • Customer count and quality
   • Retention/churn rates
   • Key milestones achieved

5. Team Assessment

6. Founder backgrounds
7. Domain expertise
8. Previous exits
9. Team completeness
10. Key person risk

11. Board composition

12. Financial Due Diligence

13. Historical financials (if available)
14. Burn rate and runway
15. Path to profitability
16. Financial projections analysis

17. Key assumptions validation

18. Return Modeling

19. Exit Scenarios:

    • Conservative exit (2-3x revenue multiple)
    • Base case exit (5-7x revenue multiple)
    • Optimistic exit (10x+ revenue multiple)

20. Return Calculations:

    • Expected exit valuation
    • Ownership at exit (dilution adjusted)
    • Gross return (exit value / investment)
    • IRR calculation (based on timeline)
    • Multiple of Invested Capital (MOIC)

21. Risk Assessment

22. Market risk (competition, timing)
23. Execution risk (team, operational)
24. Financial risk (runway, fundraising)
25. Technology risk (scalability, defensibility)
26. Regulatory risk

27. Overall risk rating (High/Medium/Low)

28. Deal Terms Analysis

29. Valuation reasonableness
30. Liquidation preferences
31. Anti-dilution provisions
32. Board seats and governance
33. Information rights

34. Pro-rata rights

35. Investment Decision

36. Investment thesis summary
37. Expected return vs. risk
38. Key risks and mitigants
39. Recommendation (Invest/Pass)
40. Conditions or modifications

Deliverable: Investment memo with analysis and recommendation

Workflow 2: Public Equity Analysis

Objective: Evaluate stock investment opportunity

Steps:
1. Company Overview
- Business description
- Market position
- Competitive advantages (moat)
- Key products/services
- Geographic presence

1. Financial Analysis

2. Income Statement:

   • Revenue trends (3-5 years)
   • Margin analysis (gross, operating, net)
   • EPS growth
   • Revenue mix and diversification

3. Balance Sheet:

   • Asset quality
   • Debt levels
   • Cash position
   • Working capital
   • Book value

4. Cash Flow:

   • Operating cash flow trends
   • Free cash flow
   • CapEx requirements
   • Dividend coverage
   • Share buyback capacity

5. Ratio Analysis

6. Profitability:

   • ROE, ROA, ROIC
   • Profit margins

7. Valuation:

   • P/E ratio vs peers and history
   • EV/EBITDA
   • P/B ratio
   • PEG ratio
   • Dividend yield

8. Financial Health:

   • Debt/Equity
   • Interest coverage
   • Current ratio

9. Valuation

10. DCF Analysis:

    • Revenue projections
    • Margin assumptions
    • WACC calculation
    • Terminal value
    • Implied share price

11. Comparable Analysis:

    • Peer company multiples
    • Implied valuation range

12. Fair Value Estimate:

    • Weighted valuation
    • Margin of safety

13. Technical Factors

14. Price trends
15. Support/resistance levels
16. Volume patterns
17. Relative strength

18. Moving averages

19. Risk Factors

20. Company-specific risks
21. Industry risks
22. Macro risks

23. ESG considerations

24. Investment Recommendation

25. Fair value estimate
26. Current price vs fair value
27. Upside/downside potential
28. Rating (Strong Buy/Buy/Hold/Sell)
29. Price target
30. Investment horizon

Deliverable: Equity research report with recommendation

Workflow 3: Real Estate Investment Analysis

Objective: Evaluate real estate investment opportunity

Steps:
1. Property Overview
- Property type (residential, commercial, industrial)
- Location and market
- Size and specifications
- Age and condition
- Purchase price

1. Income Analysis

2. Gross Rental Income:

   • Current rent roll
   • Market rent comparison
   • Occupancy rate
   • Lease terms

3. Operating Expenses:

   • Property taxes
   • Insurance
   • Utilities
   • Maintenance and repairs
   • Property management (8-12%)
   • Vacancy reserve (5-10%)
   • CapEx reserve (5-10%)

4. Net Operating Income (NOI):

   • Gross Income - Operating Expenses

5. Return Metrics

6. Cap Rate:

   • NOI / Purchase Price
   • Compare to market cap rates

7. Cash-on-Cash Return:

   • Annual Cash Flow / Total Cash Invested
   • Pre-tax and after-tax

8. Internal Rate of Return (IRR):

   • 5-10 year hold period
   • Include exit sale

9. Equity Multiple:

   • Total Cash Returned / Total Cash Invested

10. Financing Analysis

11. Loan terms (rate, term, amortization)
12. Down payment required
13. Debt service coverage ratio (DSCR)
14. Loan-to-value (LTV)
15. Monthly payment calculation

16. Positive/negative leverage

17. Market Analysis

18. Comparable sales
19. Rental comps
20. Market trends
21. Supply/demand dynamics
22. Economic drivers

23. Appreciation potential

24. Risk Assessment

25. Vacancy risk
26. Tenant quality
27. Market risk
28. Interest rate risk
29. Deferred maintenance
30. Environmental issues

31. Regulatory changes

32. Value-Add Opportunities

33. Rent increases
34. Expense reductions
35. Property improvements
36. Use conversion

37. Development potential

38. Investment Decision

39. Return summary
40. Risk-adjusted assessment
41. Recommendation
42. Offer price suggestion

Deliverable: Real estate investment analysis with recommendation

Workflow 4: ROI and Payback Analysis

Objective: Calculate return on investment for business projects

Steps:
1. Project Definition
- Investment description
- Total investment required
- Investment timeline
- Expected benefits

1. Cost Analysis

2. Initial Investment:

   • Capital costs
   • Implementation costs
   • Training costs
   • One-time expenses

3. Ongoing Costs:

   • Operating costs
   • Maintenance
   • License fees
   • Personnel

4. Benefit Analysis

5. Revenue Benefits:

   • New revenue generation
   • Revenue acceleration
   • Price improvements

6. Cost Savings:

   • Labor savings
   • Material savings
   • Efficiency gains
   • Error reduction

7. Quantification:

   • Conservative estimate
   • Expected estimate
   • Optimistic estimate

8. Financial Metrics

9. Simple ROI:

   • (Total Benefits - Total Costs) / Total Costs

10. Payback Period:

    • Time to recover initial investment
    • Simple payback = Investment / Annual Cash Flow

11. Net Present Value (NPV):

    • Discount future cash flows
    • NPV > 0 indicates good investment

12. Internal Rate of Return (IRR):

    • Discount rate where NPV = 0
    • Compare to hurdle rate

13. Sensitivity Analysis

14. Vary key assumptions
15. Break-even analysis

16. Scenario modeling

17. Recommendation

18. Investment summary
19. Key assumptions
20. Risk factors
21. Go/No-Go recommendation

Deliverable: ROI analysis with payback period and NPV/IRR

Workflow 5: Portfolio Allocation Analysis

Objective: Optimize investment portfolio allocation

Steps:
1. Current Portfolio Assessment
- Asset inventory
- Current allocation by:
- Asset class
- Geography
- Sector
- Risk level
- Performance history

1. Investor Profile
2. Risk tolerance (conservative/moderate/aggressive)
3. Investment horizon
4. Liquidity needs
5. Tax considerations
6. ESG preferences

7. Return objectives

8. Target Allocation

9. Asset Class Allocation:

   • Equities (domestic, international)
   • Fixed income (government, corporate)
   • Real estate
   • Alternatives (private equity, hedge funds)
   • Cash

10. Risk-Based Allocation:

    • Growth assets
    • Income assets
    • Defensive assets

11. Rebalancing Analysis

12. Current vs target allocation
13. Required trades
14. Tax implications
15. Transaction costs

16. Rebalancing triggers

17. Risk Analysis

18. Portfolio volatility
19. Correlation analysis
20. Concentration risk
21. Downside risk (VaR, max drawdown)

22. Stress testing

23. Expected Returns

24. Asset class return assumptions
25. Portfolio expected return
26. Risk-adjusted return (Sharpe ratio)

27. Probability of meeting goals

28. Recommendations

29. Allocation changes
30. Specific investments
31. Implementation plan
32. Monitoring schedule

Deliverable: Portfolio analysis with allocation recommendations

Quick Reference

Investment Formulas

Return Metrics

Valuation Metrics

Startup Metrics

Investment Analysis Template

# Investment Analysis: [Company/Asset Name]

**Date:** [Date]
**Analyst:** [Name]
**Investment Type:** [Equity/Debt/Real Estate/etc.]

## Executive Summary
- Investment amount: $XXX
- Expected return: XX% IRR
- Risk level: [High/Medium/Low]
- Recommendation: [Invest/Pass]

## Opportunity Overview
[Brief description]

## Key Investment Thesis
1. [Reason 1]
2. [Reason 2]
3. [Reason 3]

## Financial Analysis

### Historical Performance
| Metric | Year 1 | Year 2 | Year 3 |
|--------|--------|--------|--------|
| Revenue | | | |
| Growth | | | |
| Margin | | | |

### Return Analysis
| Scenario | Exit Value | MOIC | IRR |
|----------|------------|------|-----|
| Bear | | | |
| Base | | | |
| Bull | | | |

## Risk Assessment

### Key Risks
1. [Risk 1] - [Mitigation]
2. [Risk 2] - [Mitigation]
3. [Risk 3] - [Mitigation]

### Risk Matrix
| Factor | Rating (1-5) |
|--------|--------------|
| Market Risk | |
| Execution Risk | |
| Financial Risk | |
| Team Risk | |

## Recommendation
[Detailed recommendation with conditions]

Best Practices

Due Diligence

• Verify all claims independently
• Check references thoroughly
• Review legal documents carefully
• Validate financial statements
• Assess team track record

Return Analysis

• Use multiple valuation methods
• Model multiple scenarios
• Be conservative in assumptions
• Consider opportunity cost
• Factor in fees and taxes

Risk Management

• Diversify across investments
• Size positions appropriately
• Set clear exit criteria
• Monitor investments regularly
• Know your walk-away points

Integration with Other Skills

• Use with valuation-analyst: Deep-dive company valuation
• Use with financial-analyst: Financial statement analysis
• Use with contract-analyzer: Review investment terms
• Use with compliance-checker: Regulatory considerations
• Use with tax-strategist: Tax-efficient structuring

Common Pitfalls to Avoid

• FOMO investing: Don't rush due diligence
• Overconfidence in projections: Hockey stick forecasts rarely materialize
• Ignoring downside: Model the failure case
• Insufficient diversification: Don't concentrate too heavily
• Emotional attachment: Stay objective
• Ignoring fees: Total cost matters
• Skipping references: Always check
• Confirmation bias: Seek disconfirming evidence