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Intangible Asset Valuation MCP Server

Time Value of Money

valuation_time_value
Read-onlyIdempotent

Time value of money: discount or compound a single sum, value level and growing annuities and perpetuities, and compute a terminal value by Gordon growth or exit multiple. Method selects the formula. Use to move cash flows through time or to value a terminal value in a DCF; combine with a rate from valuation_discount_rate. For uneven multi-period cash flows use valuation_income_methods; for rate construction use valuation_discount_rate. Per method: present_value needs future_value + discount_rate + periods; future_value needs present_value + discount_rate + periods; annuity_pv needs payment + discount_rate + periods; perpetuity_pv needs payment + discount_rate; growing_annuity_pv needs payment + discount_rate + growth_rate + periods; terminal_value_gordon_growth needs final_year_cashflow + perpetual_growth_rate + discount_rate; terminal_value_exit_multiple needs final_year_cashflow + exit_multiple. Rates and growth are decimals (0.10 = 10%); for terminal_value_gordon_growth the discount rate must exceed the perpetual growth rate. 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
methodYesFormula to apply. Options: present_value = PV = FV / (1 + r)^n.; future_value = FV = PV * (1 + r)^n.; annuity_pv = PV = PMT * [1 - (1 + r)^-n] / r.; perpetuity_pv = PV = PMT / r.; growing_annuity_pv = PV of a constant-growth annuity.; terminal_value_gordon_growth = TV = FCF * (1 + g) / (r - g).; terminal_value_exit_multiple = TV = FCF * exit multiple.
paymentNoRecurring payment per period, in currency units.
periodsNoNumber of periods n (non-negative).
growth_rateNoPer-period growth rate as a decimal (0.03 = 3%).
future_valueNoFuture cash amount to discount, in currency units.
discount_rateNoPer-period discount rate as a decimal (0.10 = 10%).
exit_multipleNoExit multiple applied to the final-year cash flow (e.g. 8.0 for 8x).
present_valueNoPresent amount to compound, in currency units.
final_year_cashflowNoFinal-year projected cash flow (FCF), in currency units.
perpetual_growth_rateNoPerpetual growth rate g as a decimal; must be below discount_rate for Gordon growth.

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

A4.8/5.0
Behavior5/5

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

Annotations already cover the safety profile (readOnly, idempotent, closed-world, non-destructive), and the description goes well beyond them: pure arithmetic with no I/O or external calls, results rounded to 2 decimals, parameters for other methods accepted and ignored, and errors returned for unknown methods or missing method-required parameters. This is substantial behavioral context an agent could not derive from the schema or annotations.

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?

Long but well front-loaded: purpose, then method-parameter mapping, then unit conventions and error behavior. It loses a point for repeating the decimal convention twice ('Rates and growth are decimals (0.10 = 10%)' appears in two sentences), which is redundant in an otherwise dense passage.

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?

The tool has an output schema and rich annotations, and the description still covers the pieces those structured fields omit: method-required parameters, unit conventions, the r > g edge case, error conditions, and the ignoring of non-selected parameters. For a 10-parameter dispatcher tool, nothing an agent needs to invoke it correctly is missing.

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

Parameters4/5

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

Schema coverage is 100%, so the baseline is 3, but the description adds genuinely new semantics the schema lacks: a per-method mapping of which parameters each formula requires (e.g. perpetuity_pv needs payment + discount_rate, terminal_value_exit_multiple needs final_year_cashflow + exit_multiple). It also notes the r > g constraint for Gordon growth, adding meaning beyond the schema's property descriptions.

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?

The description states a specific verb and resource ('discount or compound a single sum', 'value level and growing annuities and perpetuities', 'compute a terminal value') and explicitly distinguishes itself from siblings: valuation_income_methods for uneven cash flows and valuation_discount_rate for rate construction. An agent can route correctly without opening any schema.

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?

It states both when to use this tool ('move cash flows through time or value a terminal value in a DCF; combine with a rate from valuation_discount_rate') and the exact conditions that select alternatives ('for uneven multi-period cash flows use valuation_income_methods'). Nothing is left to inference.

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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