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MCP Server

The Intangible Valuation MCP (Model Context Protocol) server exposes all valuation methods as tools for AI agents.

Overview

The MCP server provides AI agents with access to:

  • Time value of money calculations
  • Discount rate construction (build-up, CAPM, WACC)
  • Relief from Royalty valuations
  • Purchase Price Allocation
  • Monte Carlo simulation
  • Decision tree analysis
  • Goodwill calculation
  • Royalty benchmarking

Setup

Installation

pip install intangible-valuation[mcp]

Configuration

Add the MCP server to your AI agent configuration:

{
  "mcpServers": {
    "intangible-valuation": {
      "command": "intangible-valuation-mcp",
      "args": []
    }
  }
}

Running Standalone

intangible-valuation-mcp

Available Tools

Time Value of Money

Tool Description
present_value Calculate PV of a single future cash flow
future_value Calculate FV of a present amount
annuity_pv Calculate PV of an ordinary annuity
perpetuity_pv Calculate PV of a perpetuity
growing_annuity_pv Calculate PV of a growing annuity
terminal_value Calculate terminal value (Gordon Growth or Exit Multiple)

Discount Rates

Tool Description
build_up_discount_rate Build-up method with risk premiums
capm_discount_rate CAPM cost of equity
wacc Weighted Average Cost of Capital
dlom_finnerty Finnerty model for lack of marketability
control_premium Control premium calculation
tax_amortization_benefit TAB present value

Valuation Methods

Tool Description
relief_from_royalty Relief from Royalty method with TAB
reproduction_cost Depreciated reproduction cost
replacement_cost Depreciated replacement cost
purchase_price_allocation Full PPA waterfall
goodwill Goodwill as residual
monte_carlo_valuation Monte Carlo simulation
decision_tree_valuation Decision tree analysis

Example Usage

An AI agent can call the tools like this:

Tool: relief_from_royalty
Arguments:
  revenue_projections: [1000000, 1100000, 1200000, 1300000, 1400000]
  royalty_rate: 0.05
  discount_rate: 0.12
  tax_rate: 0.25
  useful_life: 5

Result:
  value: 387654.32
  method: Relief from Royalty
  tab_factor: 1.23

Architecture

The MCP server is built with FastMCP and exposes all valuation functions as tools with:

  • Full parameter validation via Pydantic
  • Rich descriptions for each tool
  • Structured JSON responses with calculation steps
  • Error handling with detailed messages

Development

# Run the server in development mode
python -m mcp_server.server

# Test MCP tools
python -c "from mcp_server import tools; print(tools.list_tools())"