Forecasts are useful only up to a point. Beyond it, assumptions and projections carry more and more risk, yet a firm or project may run indefinitely. Terminal value covers the period beyond the forecast, so it needs to be understood and calculated with care.
This one-hour webinar explains what terminal value represents and how to treat it in valuations and return calculations. It compares the multiple method and the perpetuity method, with the strengths and pitfalls of each, and demonstrates best practice modelling in a live case study workbook.
For worked examples you can download in Excel, see our terminal value tutorial.
What you will learn
- What terminal value is and how it improves your forecasting and analysis
- How to build terminal value calculations into your model using best practice techniques
- How to calculate terminal value with the multiple and perpetuity methods, and the strengths and pitfalls of each
- How terminal value flows into return and valuation calculations, including net present value