6
Terminal Value
The biggest, most assumption-sensitive number in the model - two ways to compute it and how to keep each honest.
Lessons in this module
Module checkpoint
3 questions · score 70% or higher to pass.
1.Final-year UFCF is $300mm, WACC 10%, g 4%. Terminal value (end of forecast) is:
2.A defensible perpetual growth rate is roughly:
3.Your perpetuity TV implies a 22x exit multiple while comps trade at 9x. This means: