Description
Multiply cashflow by it and divide by totalValue for contribution, or return zero with contributionDefined false when total is zero.
A financial model connects supplied rates, discount factors, cashflows or prices under a particular convention. A local identity or residual is not a complete valuation, an observed market relationship or a promise of future returns.
Multiply cashflow by it and divide by totalValue for contribution, or return zero with contributionDefined false when total is zero.
When to use this tool
Use Cashflow Value Contribution when you need one transparent financial-model term.
How to use the tool and how it works
- Enter cashflow, suppliedDiscountFactor, totalValue. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read presentValue, contribution, contributionDefined. Inspect contributionDefined before interpreting the associated values.
Require nonnegative suppliedDiscountFactor. Multiply cashflow by it and divide by totalValue for contribution, or return zero with contributionDefined false when total is zero.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| cashflow | Cashflow | Required. Finite number. |
| suppliedDiscountFactor | Supplied Discount Factor | Required. Finite number; minimum 0. |
| totalValue | Total Value | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| presentValue | Present Value | Required. Finite number. |
| contribution | Contribution | Required. Finite number. |
| contributionDefined | Contribution Defined | Required. Boolean. |
{
"input": {
"cashflow": 100,
"suppliedDiscountFactor": 0.8,
"totalValue": 200
},
"output": {
"presentValue": 80,
"contribution": 0.4,
"contributionDefined": true
}
}Limitations and assumptions
- Cashflow and total may be signed. The factor is supplied and one contribution does not establish complete value, an investment recommendation or an accounting valuation.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use a complete model matching the instrument, cashflows and market conventions. Review compounding, timing, currency, uncertainty and omitted costs before using a local estimate in a financial decision.
References
Similar or alternative tools
- Cashflow Duration Weight Term
Return presentValue/totalPresentValue and timeYears times that weight.
- Equity Duration Cashflow Share Term
Divide cashflowPresentValue by total PV and multiply by years.