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Glama

International Valuation

valuation_international
Read-onlyIdempotent

Adjust cross-border cash flows and country risk using purchasing-power parity, country risk premium, or international CAPM; choose the method to get the needed valuation input.

Instructions

Cross-border adjustments: purchasing-power parity, country risk premium, and international CAPM. Method selects the adjustment. Use for cross-border cash flows and country risk; pair with valuation_capm and valuation_time_value. Parameters apply per method: ppp needs spot_rate + inflation_foreign + inflation_domestic; country_risk_premium needs sovereign_yield + us_treasury_yield; intl_capm needs risk_free_rate + beta + mrp + crp. Not for the domestic cost of equity — for that use valuation_capm. 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). Returns an object with value, method, inputs, assumptions, chapter, formula_number and calculation steps. Pure arithmetic: no I/O and no external calls, and numeric results are returned rounded to 2 decimals. No authentication, credentials, or rate limits apply. 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
crpNoCountry risk premium as a decimal.
mrpNoMarket risk premium as a decimal.
betaNoSystematic risk beta (market = 1.0).
methodYesFormula to apply. Options: ppp = Eₜ = E₀·(1+π_foreign)/(1+π_domestic).; country_risk_premium = CRP = sovereign yield - US Treasury yield.; intl_capm = r = Rf + β·MRP + CRP.
spot_rateNoSpot FX rate (domestic per foreign), e.g. 7.2 CNY/USD.
risk_free_rateNoRisk-free rate as a decimal (e.g. 0.04 for 4%).
sovereign_yieldNoForeign sovereign bond yield as a decimal.
inflation_foreignNoForeign inflation rate as a decimal.
us_treasury_yieldNoUS Treasury yield as a decimal.
inflation_domesticNoDomestic inflation rate 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 observedv0.1.0

TDQS

A4.8/5.0
Behavior5/5

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

Annotations already declare readOnly/idempotent/non-destructive/closed-world, and the description adds substantive behavior beyond them: pure arithmetic with no I/O or external calls, results rounded to 2 decimals, no auth or rate limits, and precise error semantics for unknown methods or missing required parameters. That error contract is the key operational detail 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?

Front-loaded with purpose, then usage, then the method-to-parameter mapping, then return/behavioral notes. Dense but almost every sentence carries a distinct constraint. Minor penalty for run-on sentences with heavy parentheticals that make it slightly harder to scan.

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?

An output schema exists, yet the description still briefly names the return fields (value, method, inputs, assumptions, chapter, formula_number, steps), which is harmless and mildly helpful. Combined with the error contract and parameter mapping, an agent has everything required to invoke this correctly.

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% and the enum already embeds the formulas, so the baseline is 3. The description earns extra credit by mapping each method to its required parameter set (ppp→spot_rate+inflation_foreign+inflation_domestic, etc.) and clarifying that only 'method' is required while the rest are method-dependent — a cross-parameter constraint the schema cannot express. It falls short of 5 only because per-parameter semantics are largely left to 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 domain (cross-border adjustments) and enumerates the three concrete methods (PPP, country risk premium, international CAPM), and explicitly distinguishes itself from the sibling valuation_capm. An agent can route between this and the domestic cost-of-equity tool without opening either 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 ('Use for cross-border cash flows and country risk'), when-not ('Not for the domestic cost of equity — for that use valuation_capm'), and companion tools ('pair with valuation_capm and valuation_time_value'). This is exactly the routing guidance needed in a 14-sibling family.

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