Residual income valuation API

Residual income model V = BV0 + sum(RIt/(1+r)^t) where RIt = NIt - r*BV(t-1): equity value as book value plus the present value of economic profit above the equity charge; supports an explicit net-income stream or a single-stage perpetuity V = BV0 + RI1/(r-g). Answers 'residual income valuation','equity value from book value and ROE','economic profit valuation'.

Price$0.01per request

MethodPOST

Route/v1/calc/val-residual-income

StatusLive

MIME typeapplication/json

Rate limit120/minute

CacheNo cache

calcvaluationresidual-incomebook-valueeconomic-profitequitycost-of-equityfinance

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

Integration docs

Example request

{
  "bookValue": 100,
  "costOfEquity": 0.1,
  "residualIncome": 5
}

Example response

{
  "intrinsicValue": 150,
  "bookValue": 100,
  "formula": "V = BV0 + RI1/(r-g)",
  "breakdown": {
    "residualIncome1": 5,
    "costOfEquity": 0.1,
    "growthRate": 0
  }
}

Input schema

{
  "type": "object",
  "required": [
    "bookValue",
    "costOfEquity"
  ],
  "properties": {
    "bookValue": {
      "type": "number",
      "description": "Beginning book value of equity BV0",
      "examples": [
        100
      ]
    },
    "netIncomes": {
      "type": "array",
      "items": {
        "type": "number"
      },
      "description": "Projected net income per year for the explicit-stream method",
      "examples": [
        [
          12,
          13
        ]
      ]
    },
    "costOfEquity": {
      "type": "number",
      "examples": [
        0.1
      ]
    },
    "residualIncome": {
      "type": "number",
      "description": "First-year residual income for the perpetuity method",
      "examples": [
        5
      ]
    },
    "growthRate": {
      "type": "number",
      "description": "Perpetual RI growth for the perpetuity method",
      "examples": [
        0
      ]
    }
  }
}

Output schema

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