SearcharxivSearch

arXiv · 2607.24889

GAUGE: Grading Agent-Built Financial Models Without a Golden Answer

Abstract

Financial models combine public disclosures with analyst assumptions to produce forecasts and valuations. While some components can be checked mechanically, forecasts, discount rates, and target prices often admit multiple reasonable answers. Existing benchmarks nevertheless tend to grade such outputs against a single expert reference. Using independently built analyst models for the same companies, we find that across 108 directed pairs covering 65 companies, the median single-reference score is 0.33, 92.6% score below 0.70, and no same-vintage pair agrees on implied price within 10%. Point-tolerance grading can therefore penalize disagreement already present among professionals. We introduce GAUGE, a benchmark for evaluating agent-built valuation models against observed analyst practice rather than a single point answer. GAUGE uses 1,001 vendor-classified analyst workbooks and a 196-task evaluation set, with a three-layer observed-practice envelope, 56 auditable facets, eight validity gates, and deterministic structural checks. We validate the benchmark with a 55-participant known-groups study, company-grouped cross-fitting, and judge-stability audits. On the failure-aware score $\phi_0$, senior analysts average 88.3, juniors 66.0, and finance students 43.2. Across 24 agents and 1,011 scored generations, the best agent scores 53.4, above the student mean but below every senior and most juniors. It passes 93% of mechanical facets and 78% of judgment facets, with a fleet-median gap of 26 points. Current agents are substantially stronger at model construction than valuation judgment. We release the methodology, a gated de-identified data tier, a controlled training split, a versioned 48-task evaluation core, and a withheld refresh pool.

Explore related subjects

Keep this discovery

BibTeXRIS

Jiacheng Lu, Sinuo Wang, Wentao Zhao, Rui Sun, Cheng Hua, Tao Song, Hui Cai, Beidi Luan, Zhengze Wu, Lingjing Teng, Yijia He, Jing Li, Daxin Jiang, Zuo Bai, Haibing Guan. 2026-07-27. GAUGE: Grading Agent-Built Financial Models Without a Golden Answer. https://arxiv.org/abs/2607.24889

Cite the original work for its findings. Save a collection to share your selection of sources.

KEEP EXPLORING

Related papers

AUC Maximization from Biased Positive-unlabeled Data with Confidence

Maximizing the area under the receiver operating characteristic curve (AUC) is a standard approach to imbalanced binary classification. Although positive and negative data are required for maximizing the AUC, negative data are often difficult to collect in some real-world applications due to privacy concerns or the need for specialized expertise to annotate them. Thus, AUC maximization from positive and unlabeled (PU) data has been attracting attention. Existing methods assume that labeled positive data are unbiased samples from the true positive distribution. However, this ideal assumption is often violated in practice. In this paper, we propose a method to maximize the AUC from biased PU data. To address the bias, our key idea is to exploit {\it confidence}, i.e., the probability that an instance is positive, associated with the small number of labeled positive data. We derive an estimator of the AUC risk using biased PU data with confidence, enabling AUC maximization under such bias. We further show that the rewritten AUC risk induces a Bayes-optimal AUC ranking even when the available confidence is any strictly increasing transformation of the true posterior probability. We experimentally show the effectiveness of our method on eight real-world datasets.

cs.LG

Measuring the Value of World-Model Updates: A Counterfactual Utility Protocol for Continual Adaptation

Continual world models must decide whether new data justify changing the model. Fixed replay schedules and prediction-error triggers specify when to update, but neither reveals the value of an individual update: one deployment run cannot show how the same model would have performed at that moment had it held its parameters. We introduce the fork ledger, which branches a deployment stream at pre-registered decision points into matched update and hold continuations under common random numbers. It evaluates both continuations on the same episodes and records $\Delta R = R_{\mathrm{update}} - R_{\mathrm{hold}}$. Always applying one fixed update mechanism lowers return on all three simulated control tasks: CartPole ($-144.0$; checkpoint-bootstrap $95\%$ CI $[-185.4,-116.1]$, against a converged return near $650$), Walker ($-82.8$; $[-101.1,-61.7]$) and Cheetah ($-18.6$; $[-29.0,-6.6]$). Divergence is an outcome of applying the update, so the estimand counts every attempted fork; restricted to the $693$ of $720$ that did not collapse, CartPole and Walker are unchanged in sign ($-113.4$ and $-82.1$) and Cheetah becomes unresolved ($-3.9$; $[-17.5,+13.0]$). The task is the unit of inference: each contributes $240$ attempted forks over five pretrained checkpoints crossed with two drift directions. The ledger makes counterfactual utility observable for a fixed mechanism, allowing triggers to be judged by the updates they select rather than by surprise detection alone.

cs.LG

When More Is Not Better: Component Anti-Synergy in a P300 Speller

P300 brain-computer interface (BCI) spellers can provide hands-free communication for people with severe motor impairments. Modern pipelines combine multiple individually promising components, often assuming that 'more-is-better'. We tested this assumption using a four-component full-factorial experiment varying the inclusion of Euclidean Alignment (EA), xDAWN spatial filtering, subject calibration, and language model priors on a public P300 dataset. Performance was evaluated using accuracy, repetitions, and information transfer rate (ITR) with mixed-effects models. Results show that the value of components is conditional rather than additive. Calibration was the strongest singular contributor, while EA compensated for its absence in zero-calibration settings. Adding independently useful components could also reduce performance, revealing component anti-synergy. Contrary to conventional wisdom, LM support was not universally beneficial: its effect depends strongly on the strength of the underlying EEG pipeline, while results from a larger LM showed a similar pattern. Together, these findings challenge maximal 'all-on' pipeline design and highlight the value of selecting spatial and language-support components according to the quality of available EEG evidence.

cs.LG