Calculators

Adjusted present value (APV) API

Adjusted Present Value APV = PV(FCF @ unlevered cost of equity) + Tc*Debt: the unlevered firm value plus the perpetual-debt interest tax shield, separating operating value from financing effects with an optional Gordon terminal value. Answers 'APV valuation','unlevered value plus tax shield','adjusted present value of a levered deal'.

Price$0.01per request

MethodPOST

Route/v1/calc/val-apv

StatusLive

MIME typeapplication/json

Rate limit120/minute

CacheNo cache

calcvaluationapvtax-shieldunleveredleveragedcffinance

API URLhttps://x402.hexl.dev/v1/calc/val-apv

Integration docs

Example request

{
  "cashflows": [
    100,
    110,
    121
  ],
  "unleveredCostOfEquity": 0.12,
  "debt": 300,
  "taxRate": 0.21,
  "terminalGrowth": 0.03
}

Example response

{
  "apv": 1311.7599,
  "unleveredValue": 1248.7599,
  "taxShieldValue": 63,
  "formula": "APV = PV(FCF @ Ru) + Tc*Debt",
  "breakdown": {
    "unleveredCostOfEquity": 0.12,
    "debt": 300,
    "taxRate": 0.21
  }
}

Input schema

{
  "type": "object",
  "required": [
    "cashflows",
    "unleveredCostOfEquity",
    "debt",
    "taxRate"
  ],
  "properties": {
    "cashflows": {
      "type": "array",
      "items": {
        "type": "number"
      },
      "description": "Projected free cash flows, year 1 first",
      "examples": [
        [
          100,
          110,
          121
        ]
      ]
    },
    "unleveredCostOfEquity": {
      "type": "number",
      "description": "Asset cost of equity Ru as a decimal",
      "examples": [
        0.12
      ]
    },
    "debt": {
      "type": "number",
      "description": "Outstanding debt (perpetual-debt tax-shield base)",
      "examples": [
        300
      ]
    },
    "taxRate": {
      "type": "number",
      "examples": [
        0.21
      ]
    },
    "terminalGrowth": {
      "type": "number",
      "examples": [
        0.03
      ]
    },
    "costOfDebt": {
      "type": "number",
      "examples": [
        0.06
      ]
    }
  }
}

Output schema

{
  "type": "object",
  "additionalProperties": true
}