valmodeller

Valmodeller is a software framework designed to help practitioners build, analyze, and compare value-based models for decision making and valuation tasks. It aims to decouple model specification from data handling and from the optimization or simulation engines, improving transparency and reusability. The framework provides a structure for defining value functions, decision variables, constraints, and risk measures, and supports multiple modeling paradigms including deterministic and stochastic scenarios.

In architecture, valmodeller typically comprises a model definition layer, a data layer, a solver or simulator layer, and a results layer. Models are composed from modular components (such as value functions and risk adjustments) that can be reused across projects. The data layer handles parameter inputs and scenario data, while the solver layer interfaces with optimization or probabilistic simulation engines. The results layer offers reporting and visualization of outcomes, sensitivity analyses, and backtesting capabilities.

Origin and status: Valmodeller emerged in the open-source and academic software ecosystems as a flexible toolkit for valuation and decision analysis. It is maintained by a community of contributors and is available under an open license. The project emphasizes extensibility and interoperability with common data formats and external solvers.

Applications: Users apply valmodeller to finance and investment appraisal, project valuation, risk assessment, policy analysis, and operations research where value-based criteria guide decisions.

Limitations: As with many modeling frameworks, effective use requires statistical and mathematical understanding, and performance depends on model complexity and the chosen solver. It is not a one-size-fits-all solver.