Intangible Asset Valuation Engine

Complete intangible asset valuation library implementing 124+ functions from the Intangible Asset Valuation textbook. Python library + MCP server + AI-Agent Skills.

Overview

A production-grade Python library for intangible asset valuation, implementing every formula from the Intangible Asset Valuation 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:

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

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

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):

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:

"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 — published as io.github.simonplmak-cloud/intangible-valuation (manifest: server.json) and listed on Glama and the Official MCP Registry. The glama.json file holds the Glama maintainer entry.

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

# 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
• PyPI: pypi.org/project/intangible-valuation
• MCP Server Guide: docs/mcp.md
• AI Skills Guide: docs/skills.md

Companion Textbook

Intangible Asset Valuation: A Comprehensive Guide to Valuing Brands, IP, Technology, and Human Capital
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

@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/simonplmak-cloud/intangible-valuation},
  license = {MIT},
}

Based on formulas from the Intangible Asset Valuation textbook.

License

MIT — see LICENSE for details.