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Startup Valuation MCP Server

Time Value of Money

valuation_time_value
Read-onlyIdempotent

Discount, compound, and forecast value over time: single future value PV, net present value of a cash-flow stream, annuity present value, discounted cash flow with a Gordon terminal value, constant-rate compound growth of revenue or cash flow, and the implied compound annual growth rate (CAGR). Method selects the formula. Use to convert future cash to today's value, to value a full forecast with a terminal value (dcf), to project a revenue or cash-flow series forward, or to derive the growth rate implied by two values; get the discount rate from valuation_capm or valuation_international. Parameters apply per method: present_value needs future_value + rate + periods; npv needs cash_flows + rate; annuity needs payment + rate + periods; dcf needs cash_flows + rate (optional: terminal_growth); compound_growth needs starting_value + growth_rate + periods; cagr needs starting_value + ending_value + periods. growth_rate must be greater than -1, cagr requires starting_value > 0 and periods > 0, and dcf requires rate greater than terminal_growth. Not for option values (use valuation_advanced) or for expected values over outcomes (use valuation_probability). Only method is required; all other parameters are method-dependent, so supply those the selected method names and omit the rest (defaults apply where defined). Rate and decimal inputs are fractions (0.10 = 10%); probability and weight lists are in [0,1] and sum to 1. Returns value, method, inputs, assumptions, chapter, formula_number and calculation steps; pure arithmetic — no I/O and no external calls — rounded to 2 decimals, with no auth or rate limits. An unknown method, or a missing method-required parameter, returns an error instead of a value.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
rateNoPer-period discount rate as a decimal (0.10 = 10%).
methodYesFormula to apply. Options: present_value = PV = C / (1+r)^t.; npv = NPV = Σ Cₜ / (1+r)^t.; annuity = PV = P·[1-(1+r)^-n]/r.; compound_growth = V_n = V_0 (1+g)^n.; cagr = CAGR = (V_n / V_0)^(1/n) - 1.; dcf = DCF = Σ Cₜ/(1+r)^t + [C_n(1+g)/(r−g)]/(1+r)^n.
paymentNoRecurring payment per period, in currency units.
periodsNoNumber of compounding periods (may be fractional).
cash_flowsNoCash flows by period, first element at t=1; negatives allowed for outflows.
growth_rateNoRevenue growth rate as a decimal (0.40 = 40%).
ending_valueNoValue at t=n to compare against the starting value, in currency units.
future_valueNoFuture cash amount to discount, in currency units.
starting_valueNoValue at t=0 (revenue or cash flow) to grow forward, in currency units.
terminal_growthNoPerpetual growth rate g applied after the forecast window, as a decimal.

Output Schema

TableJSON Schema
NameRequiredDescriptionDefault
errorNoError message when the call fails.
stepsNoIntermediate steps for traceability.
valueYesComputed valuation or metric.
inputsNoEcho of the normalised inputs used.
methodNoFormula / method name that produced the result.
chapterNoSource textbook chapter.
assumptionsNoModelling assumptions applied.
formula_numberNoSource textbook formula number (e.g. '3.1').

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?

Beyond the annotations (readOnly/idempotent/non-destructive/openWorld=false), the description discloses that the tool is pure arithmetic with no I/O, no external calls, no auth or rate limits, rounds to 2 decimals, and returns an error on an unknown method or missing method-required parameter. These are behaviors the annotations cannot express.

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 and every clause carries signal for a 10-parameter, six-method tool. Minor redundancy: the enumeration of return fields restates what the output schema already provides.

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 method-dispatched calculator with a rich output schema and full annotation coverage, the description covers methods, required inputs, constraints, error behavior, and sibling routing. 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.

Parameters5/5

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

Schema coverage is 100%, but the description adds cross-parameter semantics absent from the schema: which parameters each method requires (e.g., dcf needs cash_flows + rate with optional terminal_growth), plus validation constraints (growth_rate > -1, cagr requires starting_value > 0 and periods > 0, dcf requires rate > terminal_growth) and the fraction/percent convention.

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 opens with a specific verb+resource ('Discount, compound, and forecast value over time') and enumerates all six methods (PV, NPV, annuity, DCF, compound growth, CAGR), so an agent knows exactly what the tool computes. It also names the sibling tools it is not (valuation_advanced, valuation_probability), making it trivially distinguishable.

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 gives explicit use cases ('convert future cash to today's value', 'value a full forecast with a terminal value', 'project a revenue series forward', 'derive the growth rate implied by two values'), explicit exclusions ('Not for option values', 'not for expected values over outcomes'), and routes to sibling tools for inputs (discount rate from valuation_capm or valuation_international).

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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