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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; other parameters are method-dependent, so supply those named for the selected method and omit the rest (documented defaults apply where defined). Pure arithmetic: no I/O and no external calls, and numeric results are returned rounded to 2 decimals. Parameters belonging to other methods of this tool are accepted and ignored. Supplying an unknown method, or leaving unset a parameter that the chosen method requires, 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.
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).
formula_referenceNoMathematical formula or reference applied.

Schema Changelog

Changes observed during successful MCP inspections.

  1. First observed

TDQS

A4.9/5.0
Behavior5/5

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

Annotations already establish readOnly/idempotent/non-destructive, and the description adds substantial context beyond them: pure arithmetic with no I/O or external calls, results rounded to 2 decimals, extra method parameters are accepted and ignored, and unknown methods or missing method-required parameters raise an error rather than returning a value. This is exactly the error/failure behavior an agent needs.

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 but well front-loaded: purpose, then routing, then per-method parameter contracts, then behavioral notes. One flaw is mild redundancy — the asset-specific sibling list ('valuation_customer, valuation_technology, valuation_ip or valuation_human_capital') is repeated twice in adjacent sentences, which could be tightened.

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, method-branching arithmetic tool with an output schema present, the description covers routing, per-method required inputs, alignment constraints, defaults, and error behavior. Nothing needed to invoke it correctly is missing, and return-value formatting is not required since an output schema exists (the 2-decimal rounding note is a bonus).

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 already 100%, yet the description adds the cross-parameter contract the schema cannot express: per-method required inputs, the period-alignment constraint between cash_flow_projections and contributory_asset_charges, the equal-length requirement for cash_flows_with/cash_flows_without, tab_enabled as optional, and the rule that only 'method' is required.

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/resource ('income-approach arithmetic' via enumerated formulas: relief_from_royalty, mpeem, single_period_excess_earnings, incremental_cashflow, contributory_asset_charges) and explicitly names the siblings it is not (valuation_customer, valuation_technology, valuation_ip, valuation_human_capital). An agent can select it over the cost/market approach tools 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?

Gives explicit when-to-use routing: 'relief_from_royalty for IP with observable royalty rates' and excess earnings 'for the residual intangible', plus a stated preference rule ('for a complete asset-specific valuation... prefer the dedicated valuation_customer, valuation_technology, valuation_ip and valuation_human_capital tools'). Alternatives for royalty inputs, cost and market indications are named directly.

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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