Hire an AI equity and residual income modeler

Everything it can hand back

Your task sets the actual outputs. The specialist picks the methods that cover them.

• Book equity rolled forward, with every movement named and tied to the balance sheet
• Book value per share from closing shares
• Residual income for each period: earnings less the charge on opening book equity
• Dirty-surplus items listed apart from earnings
• A justified price-to-book scenario, labelled as a scenario
• Missing facts, and checks that could not run

How it does the job well

• Reconcile to source documents, such as bank statements, ledgers and invoices, before reporting.
• Show the calculation, inputs and period for every figure.
• Label actuals, estimates and forecasts clearly.
• Send tax, legal and regulatory questions to a qualified professional.

Mistakes it avoids

• Mixing cash and accrual figures, or different periods, in one comparison.
• Rounding or formula errors that do not tie back to totals.
• Giving personal investment advice.

What a good result looks like

An example, not your task: You want a second view of a stock next to your cash flow model, anchored on book equity.

• 1 EQUITY ROLL-FORWARD. Opening to closing book equity with each movement named, the tie to the balance sheet, and book value per share.
• 2 RESIDUAL INCOME. For each period, the equity charge on opening book equity, earnings and residual income.
• Dirty-surplus list. Equity movements that did not pass through earnings, kept apart from residual income.
• 3 PRICE-TO-BOOK SCENARIO. A stable-state price-to-book case from return on equity, growth and required return, labelled a scenario.
• SOURCES, MISSING and CHECKS MISSED. Where each figure came from, each gap and the line it stops, and checks that could not run.

How the work is checked

• Beginning-book charges and equity rates match; all non-income equity changes are reconciled; historical residuals and stable-state assumptions stay separate and every forecast needs source evidence.
• Trace each material input to its source, date, currency, scale, sign and reporting period. Retain unresolved MISSING: lines.
• Reconcile opening balances, additions, deductions and closing balances. Match enterprise or equity cash flows to the corresponding discount rate.
• Keep hardcoded inputs separate from live formulas. Inspect changed inputs, actual recalculation, exported formulas and saved-file reopening.
• States which checks passed, failed or could not run, and names missing inputs.

These checks have not been run against a model yet. Your AI uses them to check its own work.

A second opinion

Before it hands back, your AI reviews the draft the way Charlie Munger would. This is a way of reviewing the work. It does not mean they wrote or endorse it.

Capabilities

• Book value per share roll-forward. Rolls parent common equity forward from opening to closing, naming each movement, and divides by closing shares. Hands step 2 each period's opening book equity and the dirty-surplus items. Check before moving on: the closing figure ties to the balance sheet.
• One-period residual income bridge. Charges each period for its opening book equity at the cost of equity and subtracts it from ordinary earnings. Reconciles dirty-surplus items on their own. One period is an illustration, not a valuation.
• Justified price-to-book scenario. Builds a stable-state case from forward return on equity, growth and the return shareholders require. Runs only after clean surplus and a workable retention rate are shown. Labelled a scenario, apart from the historical result.

How the role works

1. Checks your task, context and available tools.
2. Picks the methods needed and prepares a work plan.
3. Carries out supported tasks, with each method's limits and review gates.
4. Checks the real deliverables and corrects supported faults.
5. Hands back files, evidence and unresolved gaps.

Your specialist's working setup

Download the base specialist without a task form or account. README.md and SETUP.md explain how to use the folder. SOUL.md defines its scope. INTAKE.md asks missing questions inside your AI. PLAYBOOK.md, SKILLS.md, BEST_PRACTICES.md, CHECKS.md and HANDOFF.md guide the work and its checked deliverables.

Complete associated skills, supporting files and licences are included. Choose only the methods needed for the actual task. Keep context, working files and accepted feedback in your AI project.

Use this specialist through MCP or the API

Call prepare_specialist with role_id build-a-clean-surplus-residual-income-model only. No task is required to load it. Your AI asks what job you need done, what you want back and which relevant context it can use.

For task-led hiring, call find_specialist, explain the suggested specialists and let the user accept or change the team.

Complete ZIP: Download base specialist. API: GET /api/v1/specialists/build-a-clean-surplus-residual-income-model/pack. The host AI supplies its own model, tools and execution; a pack does not connect accounts or run a task.

Inputs and helpful context

The specialist starts from the task brief. Only active methods require their inputs.

For the primary method, when used

• Common equity at the start and end of each period, for parent shareholders only (from the balance sheet)
• Ordinary earnings for each period (from the income statement)
• Common dividends, share issues, buybacks and other comprehensive income (from the cash flow and equity statements)
• Opening and closing share counts
• Your cost of equity with its date and source, and your forward return on equity, both labelled as assumptions
• The reporting date, currency, scale and fiscal calendar

Helpful context (optional)

• Three or more years of annual reports, so each roll-forward has a prior period.
• A dated, sourced cost of equity.
• A named reviewer who knows the company's accounting.

Tools and access

• A spreadsheet engine and file-capable AI: Builds a workbook with inputs, formulas and checks you can click into. In plain chat it returns the same tables as text and says no workbook was made.
• The company's own filings: They give the real equity movements. A data-site summary often hides buybacks and OCI.
• A spreadsheet engine and file-capable AI: Create, recalculate, render and reopen the requested native workbook.
• Node.js 20 or later: Run the bundled dependency-free reference calculation against explicit numeric inputs.
• Claude, ChatGPT or Gemini: Any of them can do these sums in a chat.
• An AI that can make spreadsheet files: It can build the workbook, recalculate it and check that it reopens.
• Node.js 20 or later (optional): Runs the small script that comes with the skill, for a second check of the numbers.

Functions and deliverables

• Equity and residual income modeler: Track changes in owners' equity. Check earnings left after the required return, then model a separate future value case.
  • Book equity rolled forward, with every movement named and tied to the balance sheet
  • Book value per share from closing shares
  • Residual income for each period: earnings less the charge on opening book equity
  • Dirty-surplus items listed apart from earnings
  • A justified price-to-book scenario, labelled as a scenario
  • Missing facts, and checks that could not run
• Book value per share calculator: Share equity, profit, dividends and share counts. Get book value per share with a checked balance breakdown.
  • A common-equity movement table and book-value-per-share bridge.
  • If you ask for one, an editable workbook of the book value per share roll-forward, with its inputs, formulas and test cases to rerun.
  • A tie-out of computed closing equity and the balance sheet, the inputs still missing and the checks that ran.
• Excess earnings calculator: Share book equity, earnings and required return. Check the profit left after the cost of equity.
  • The equity charge for the year
  • Residual income, which is net income less the charge
  • Closing book equity after earnings and dividends
  • A one-year discounted figure, labelled as one piece of value only
  • A list of missing facts and checks it could not run
  • A small workbook with the same sums, if your AI can make files
• Price-to-book scenario calculator: Share profit, growth and required return assumptions. See the price-to-book ratio and retained earnings they imply.
  • The share of earnings kept to fund your growth, shown as a percent
  • The justified price-to-book ratio
  • A check that retention sits between 0% and 100%
  • A check that required return is above growth
  • A list of missing facts and checks it could not run
  • A small workbook with the same sums, if your AI can make files
• me.md builder: Answer a few questions, or let your AI use what it remembers. Get one private file that tells any AI who you are.
  • One me.md file with up to ten dated sections
  • A list of facts taken from memory, for you to check
  • A short note of what it removed for privacy
  • The two next steps, to save it and set it up
• Charlie Munger: Stress-test a plan using Charlie Munger’s recorded approach. Turn it upside down, examine incentives and ask where your knowledge ends.
  • Your problem worked on the way Charlie Munger would: their questions, their method, their push-back
  • The answer or the work, in Charlie Munger's voice, using their ideas by name
  • Anything that goes beyond their public record, marked
  • One suggested next step

Tasks you can use it for

• You want a second view of a stock next to your cash flow model, anchored on book equity.
• Book equity moved by more than earnings less dividends and you need to know why.
• You need a price-to-book figure that follows from return on equity, growth and the return shareholders require.
• A reviewer asks where each equity movement came from.

Limits to check before starting

• You value the company on its cash flows. Use the Growth and reinvestment spreadsheet modeller workflow or the Long-term value assumption checker workflow.
• You only need book value per share for one year. Use the Book value per share calculator.
• The company is a property group where reported net asset value and book value differ. Use the Property net asset value and book-value checker workflow.
• You want a buy or sell call or a target price. This builds a scenario for a person to review.

Best way to use this role

Give it one clear outcome, the actual files and a definition of done. Keep the work in one AI project so it can reuse checked context and earlier files.

• Download the workflow pack and give it to an AI that can read files, such as Claude, ChatGPT or Gemini. Use one that can make spreadsheets if you want a workbook.
• Attach the annual reports or filings for each period, and paste your cost of equity with its source and date. Say which figures are your own assumptions.
• After step 1, check that opening book equity plus the movements equals closing book equity on the balance sheet, with no plug.
• After step 2, check that each period's charge uses that period's opening book equity and the same cost of equity. Read the dirty-surplus list.
• After step 3, check that the price-to-book case is called a scenario and that its retention rate fits your return on equity and growth. Fill every MISSING line first.

Read it as data

Read the complete role setup as JSON. Connect your AI to the AI Blocks MCP library and read aiblocks://roles/build-a-clean-surplus-residual-income-model for its role instructions and pinned sources.

This is a prepared AI role. No task has run. Your AI carries out authorized work using its available tools and reports the actual deliverables and checks.