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Intangible Asset Valuation MCP Server

Income Methods

valuation_income_methods
Read-onlyIdempotent

Income approach: relief from royalty, multi-period and single-period excess earnings, incremental cash flow, and contributory asset charges. Method selects the formula. Use for the income-approach arithmetic: relief_from_royalty for IP with observable royalty rates, and excess earnings (mpeem or single_period_excess_earnings) for the residual intangible. For a complete asset-specific valuation of customer, technology, IP or workforce assets, prefer the dedicated valuation_customer, valuation_technology, valuation_ip and valuation_human_capital tools. For royalty-rate inputs use valuation_royalty_analysis; for asset-specific income valuations use valuation_customer, valuation_technology, valuation_ip or valuation_human_capital; for cost or market indications use valuation_cost_approach and valuation_market_approach. Per method: relief_from_royalty needs revenue_projections + royalty_rate + discount_rate + tax_rate + useful_life (optional: tab_enabled); mpeem needs cash_flow_projections + contributory_asset_charges + discount_rate + tax_rate (optional: tab_enabled); single_period_excess_earnings needs normalized_earnings + contributory_asset_charges + capitalization_rate; incremental_cashflow needs cash_flows_with + cash_flows_without + discount_rate; contributory_asset_charges needs assets. cash_flow_projections and contributory_asset_charges must be period-aligned; cash_flows_with and cash_flows_without must be equal length. Only method is required; all other parameters are method-dependent — supply those the selected method names and omit the rest (defaults apply where defined). Rates and premiums are decimals (0.10 = 10%). Pure arithmetic: no I/O and no external calls, rounded to 2 decimals; parameters belonging to other methods are accepted and ignored. An unknown method, or a missing method-required parameter, returns an error instead of a value.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
assetsNoContributory assets, each {value, return_rate}.
methodYesFormula to apply. Options: relief_from_royalty = PV of after-tax royalties avoided by ownership.; mpeem = PV of excess earnings after contributory asset charges.; single_period_excess_earnings = Capitalize one period of excess earnings.; incremental_cashflow = PV of cash flows with the asset minus without it.; contributory_asset_charges = Total contributory asset charges.
tax_rateNoMarginal tax rate as a decimal (0.25 = 25%).
tab_enabledNoWhether to include the tax amortization benefit in the result.
useful_lifeNoUseful life in years n (integer ≥ 1).
royalty_rateNoRoyalty rate as a decimal (0.05 = 5% of revenue).
discount_rateNoPer-period discount rate as a decimal (0.10 = 10%).
cash_flows_withNoCash flows per period with the asset, in currency units.
cash_flows_withoutNoCash flows per period without the asset, in currency units.
capitalization_rateNoCapitalization rate as a decimal (0.15 = 15%).
normalized_earningsNoSingle-period normalized earnings, in currency units.
revenue_projectionsNoProjected revenue per period t=1..n, in currency units.
cash_flow_projectionsNoProjected after-tax cash flows per period t=1..n, in currency units.
contributory_asset_chargesNoContributory asset charge per period t=1..n, in currency units.

Output Schema

TableJSON Schema
NameRequiredDescriptionDefault
errorNoError message when the call fails.
stepsNoIntermediate calculation steps for traceability (one string per step).
valueYesComputed valuation, rate, or metric.
methodNoFormula / method name that produced the result.
assumptionsNoModelling assumptions applied (list of strings or key/value object).
defaults_appliedNoOptional parameters that were not supplied, so their documented defaults were used.
formula_referenceNoMathematical formula or reference applied.

Schema Changelog

Changes observed during successful MCP inspections.

  1. First observed

TDQS

A4.7/5.0
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already establish readOnlyHint, idempotentHint and non-destructive, but the description adds significant context beyond them: pure arithmetic with no I/O or external calls, results rounded to 2 decimals, rates as decimals, cross-method parameters silently ignored, and errors returned for unknown methods or missing method-required parameters. Only the output shape (covered by the output schema) and the tax-amortization-benefit mechanics are left implicit.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Dense and largely front-loaded, moving from purpose to alternatives to per-method parameters to global semantics. It loses a little to repetition, listing the same four asset-specific sibling tools twice (once in the routing sentence, once in the alternatives clause), but each remaining sentence carries real information.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness5/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a 14-parameter multi-formula calculator with an output schema and full annotation coverage, the description supplies everything needed to invoke it correctly: method routing, per-method required inputs, cross-parameter constraints, numeric conventions, and error behavior. No material gap remains.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters5/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is 100%, but the description goes further with relational and numeric constraints the schema cannot express: which parameters each method requires, that only method is required and the rest are method-dependent, the decimal convention, and array-length constraints (cash_flow_projections/contributory_asset_charges period-aligned; cash_flows_with/cash_flows_without equal length). This is meaningful value beyond the schema.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

States a specific verb and resource ('Income approach: relief from royalty, multi-period and single-period excess earnings...') and names the sibling tools it is not (valuation_customer, valuation_technology, valuation_ip, valuation_human_capital, valuation_royalty_analysis, valuation_cost_approach, valuation_market_approach). An agent can separate this income-approach arithmetic tool from the asset-specific and alternate-approach siblings immediately.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines5/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Explicit routing: relief_from_royalty for IP with observable royalty rates, excess earnings for the residual intangible, and a clear directive to prefer dedicated asset tools for asset-specific valuations, valuation_royalty_analysis for royalty inputs, and cost/market tools for those indications. When/when-not plus named alternatives are all present.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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