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Terminal Value

DCF residual value beyond explicit forecast; Gordon growth or exit multiple

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Terminal Value

DCF residual value beyond explicit forecast; Gordon growth or exit multiple

Definition

Terminal value estimates the value of a business beyond the explicit forecast period. Methods include Gordon Growth Model (perpetuity) or exit multiples. Often represents 60-80% of total DCF value.

Related Topics

#dcf analysis #long-term value #perpetuity #exit valuation

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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