Intangible Asset Valuation
README.md
# Intangible Asset Valuation Engine
<!-- mcp-name: io.github.simonmak-ascent/intangible-valuation -->
> **A complete intangible asset valuation library** implementing 124+ functions from the *Intangible Asset Valuation* textbook — Python library, MCP server, and AI-agent skills.
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[](https://pypi.org/project/intangible-valuation/)
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[](https://intangible-valuation.simonmak.com)
[](https://intangible-valuation.simonmak.com/api/mcp)
[](https://scorecard.dev/viewer/?uri=github.com/simonmak-ascent/intangible-valuation)
[](https://glama.ai/mcp/servers/simonmak-ascent/intangible-valuation)
## Overview
A production-grade Python library for intangible asset valuation, implementing every formula from the **[Intangible Asset Valuation](https://www.amazon.com/Intangible-Asset-Valuation-Comprehensive-Technology/dp/B0FZ8742R1)** textbook by Simon Mak, William Yuen, Paul Wu, and Wayne Hu (Valuation in Practice Series, Ascent Partners). Designed for developers, financial analysts, accountants, and AI agents who need auditable, structured valuation computations for ASC 805 / IFRS 3 compliant workflows.
**Three-layer architecture:**
```mermaid
graph TB
subgraph Library["Python Library"]
MOD["22 Modules<br/>124+ Functions"] --> VR["ValuationResult"]
end
subgraph MCP["MCP Server"]
VR --> SVR["FastMCP Server<br/>14 folded tools"]
end
subgraph Skills["AI-agent skills"]
SVR --> AV["Asset Valuation"]
SVR --> DR["Discount Rates"]
SVR --> PPA["Purchase Price Allocation"]
SVR --> IMP["Impairment Testing"]
end
style Library fill:#0083AB,color:#fff
style MCP fill:#4CAF50,color:#fff
style Skills fill:#9C27B0,color:#fff
```
1. **Python Library** — 22 modules, 124+ typed functions, all returning `ValuationResult` (value + assumptions + steps + formula reference)
2. **MCP Server** — 14 folded tools (124+ formulas) for AI agents via stdio and hosted Streamable HTTP
3. **AI-agent skills** — 4 skill definitions with workflow guidance for valuation domains
## Installation
```bash
pip install intangible-valuation # library only
pip install intangible-valuation[mcp] # + MCP server
pip install intangible-valuation[dev] # + pytest, ruff, mypy
```
## Quick Start
### Python Library
```python
from intangible_valuation.core.time_value import present_value
from intangible_valuation.core.discount_rates import build_up_discount_rate
from intangible_valuation.income_methods.relief_from_royalty import relief_from_royalty
# Present Value
result = present_value(future_value=500_000, discount_rate=0.10, periods=8)
print(f"PV: ${result.value:,.2f}") # $233,253.69
# Build-Up Discount Rate
rate = build_up_discount_rate(
risk_free_rate=0.04, equity_risk_premium=0.06,
size_premium=0.02, industry_risk_premium=0.01, specific_risk_premium=0.03,
)
print(f"Discount rate: {rate.value:.2%}") # 16.00%
# Relief from Royalty — Patent Valuation
value = relief_from_royalty(
revenue_projections=[1_000_000, 1_100_000, 1_200_000, 1_300_000, 1_400_000],
royalty_rate=0.05, discount_rate=0.12, tax_rate=0.25, useful_life=5,
)
print(f"Patent value: ${value.value:,.2f}")
```
### MCP Server (for AI Agents)
The server exposes **14 tools**, each folding a family of formulas behind a
`method` argument — time value, discount rates, cost/market/income approaches,
IP, technology, customer and human-capital assets, goodwill and purchase price
allocation, impairment, royalty analysis, uncertainty (Monte Carlo / decision
trees), and transfer-pricing / litigation.
**Local (stdio):**
```bash
pip install "intangible-valuation[mcp]"
python mcp_server/server.py
```
**Hosted (Streamable HTTP)** — no install, no API key:
```
https://intangible-valuation.simonmak.com/api/mcp
```
**OpenCode** — add to `opencode.json`:
```json
"intangible-valuation": {
"type": "remote",
"url": "https://intangible-valuation.simonmak.com/api/mcp",
"timeout": 60000
}
```
**Claude Desktop / Cursor** — add the HTTP URL
`https://intangible-valuation.simonmak.com/api/mcp` as an MCP server, or run the
stdio entrypoint above.
**MCP Registry & Glama** — published as
`io.github.simonmak-ascent/intangible-valuation`. The
[`server.json`](server.json) manifest declares both the hosted
`streamable-http` remote and a PyPI **stdio** package, and
[`glama.json`](glama.json) carries the Glama listing. Install and run the stdio
server from either registry:
```bash
pip install "intangible-valuation[mcp]" && intangible-valuation-mcp # pip
uvx --from intangible-valuation intangible-valuation-mcp # uvx (no install)
```
Listed on
[Glama](https://glama.ai/mcp/servers/simonmak-ascent/intangible-valuation) and
the [Official MCP Registry](https://registry.modelcontextprotocol.io).
**Prompts and resources.** Besides the 14 tools, the server offers three guided
prompts (`purchase_price_allocation`, `value_ip_asset`, `impairment_test`) and a
machine-readable method catalog at `intangible-valuation://methods`, so agents can
see every method's required parameters before calling a tool.
### AI-agent skills
Copy the `skills/` directory to your agent's skills folder:
- **`asset-valuation`** — Patents, trademarks, technology, customer relationships, human capital
- **`discount-rate-construction`** — Build-up, CAPM, WACC, risk premiums, adjustments
- **`purchase-price-allocation`** — ASC 805 / IFRS 3 PPA workflow, goodwill calculation
- **`impairment-testing`** — ASC 350, IAS 36 goodwill and intangible impairment
## Valuation Methods by Category
| Category | Methods | Chapter |
|----------|---------|---------|
| **Time Value** | PV, FV, annuity, perpetuity, growing annuity, terminal value | 2 |
| **Discount Rates** | Build-up, CAPM, WACC, TAB, control premium, DLOM, currency adjustment | 2 |
| **Statistics** | Monte Carlo, decision trees, regression | 2 |
| **Cost Approach** | Reproduction cost, replacement cost | 3 |
| **Market Approach** | Comparable transactions, royalty capitalization | 3 |
| **Income Methods** | Relief from Royalty, MPEEM, incremental cash flow | 4 |
| **Intellectual Property** | Patent, trademark, copyright, trade secret | 5 |
| **Royalty Analysis** | Benchmarking, 25% rule, adjustment | 6 |
| **Technology** | Developed technology, software, data assets, platforms | 7 |
| **Customer-Related** | Customer relationships, distribution network, non-compete | 8 |
| **Human Capital** | Assembled workforce, key person | 9 |
| **Goodwill & PPA** | Goodwill calculation, PPA waterfall | 10 |
| **Impairment** | Goodwill & intangible impairment (ASC 350 / IAS 36) | 11 |
| **Monte Carlo** | Simulation, sensitivity analysis | 15 |
| **Decision Trees** | Backward induction | 16 |
| **Litigation** | Lost profits, pre-judgment interest | 17 |
| **Transfer Pricing** | CUP method, OECD guidelines | 18 |
## Why This Library?
- **Auditable** — Every function returns `ValuationResult` with value, method, formula reference, assumptions, and step-by-step calculation breakdown
- **Textbook-accurate** — All 124+ formulas verified against book example values with 1056 unit tests
- **AI-ready** — MCP server (14 folded tools) and Skills for seamless AI agent integration
- **Complete coverage** — All three valuation approaches (cost, market, income) across 19 chapters
- **Open source** — MIT license, extensible, well-documented
## Development
```bash
# Install dev dependencies
pip install -e ".[dev]"
# Run tests
pytest
# Run with coverage
pytest --cov=src --cov-report=term-missing
# Lint
ruff check .
# Type check
mypy src/
# Regenerate the MCP stdio server from the canonical surface
python scripts/generate_mcp.py
```
## Documentation
- **API Reference:** [intangible-valuation.simonmak.com](https://intangible-valuation.simonmak.com)
- **PyPI:** [pypi.org/project/intangible-valuation](https://pypi.org/project/intangible-valuation/)
- **MCP Server Guide:** [docs/mcp.md](docs/mcp.md)
- **AI Skills Guide:** [docs/skills.md](docs/skills.md)
## Companion Textbook
**[Intangible Asset Valuation: A Comprehensive Guide to Valuing Brands, IP, Technology, and Human Capital](https://www.amazon.com/Intangible-Asset-Valuation-Comprehensive-Technology/dp/B0FZ8742R1)**
*Theory, Methods, Regulation, and Practice* — Valuation in Practice Series by Ascent Partners
By Simon Mak, William Yuen, Paul Wu, Wayne Hu · 176 pages · 19 chapters · 3 appendices
## Citing This Project
```bibtex
@software{intangible_valuation_engine,
author = {Mak, Simon and Yuen, William and Wu, Paul and Hu, Wayne},
title = {Intangible Asset Valuation Engine},
year = {2026},
url = {https://github.com/simonmak-ascent/intangible-valuation},
license = {MIT},
}
```
Based on formulas from the **Intangible Asset Valuation** textbook.
## Use with Context7
Up-to-date Intangible Asset Valuation Engine documentation is indexed on [Context7](https://context7.com/simonmak-ascent/intangible-valuation), so coding agents can pull it into context on demand. With the Context7 MCP server or `ctx7` CLI installed, name the library in your prompt:
```text
use library /simonmak-ascent/intangible-valuation for API and docs
```
## License
MIT — see [LICENSE](LICENSE).
---
By [Ascent Partners](https://www.ascent.partners) — part of the Valuation in Practice Series.
If this saves you time, a ⭐ on GitHub helps others find it.
TDQS
A4.7/5.0
Scored across 14 tools
Disambiguation4/5
Tools are cleanly partitioned by valuation subdomain (discount rates, cost/market/income approaches, asset types, PPA, impairment, simulation), and every description explicitly states when to prefer another tool. The only overlap is between valuation_income_methods and the asset-specific tools (valuation_ip, valuation_technology, valuation_customer), which the descriptions acknowledge and guide around, so boundaries are mostly distinct but require careful reading.
Naming Consistency5/5
All 14 tools use a single predictable snake_case convention with the uniform valuation_ prefix followed by a domain noun. There is no mixing of camelCase, verb styles, or naming schemes.
Tool Count5/5
14 tools is well within the ideal 3-15 range and each tool groups a coherent family of methods (e.g. all income-approach formulas together, all rate construction together). No tool feels redundant or missing at the set level, and the method-parameter pattern keeps the surface compact.
Completeness5/5
The surface covers the full intangible-valuation lifecycle: discount-rate construction, time value, cost, market, and income approaches, asset-specific valuations (IP, technology, customer, human capital), royalty analysis, transfer-pricing/litigation, PPA/goodwill, impairment, and uncertainty simulation. There are no obvious dead ends for the stated domain.
Maintenance
ActivityMaintained
ResponsivenessNo issues