|
|
Terminal value (See Chapter 40 of the Vernimmen)
When a company is valued using the DCF method, the final, or terminal, value of the company at the end of the explicit horizon is estimated. Terminal value can be derived either from capital employed, revalued or not, or by using the multiples of operating balances, or by discounting to infinity the normative cash flows.
|
|
|
|
You get more than just a glossary
on www.vernimmen.com:
- A monthly newsletter with over 26,000
subscribers
- 610,000 financial data for over 16,000
groups
- A 279-question quiz with answers
- A text book that has
sold 70,000 copies
- And all the rest |
To find other words in the
dictionary of finance, click on the first letter of the word you are looking
for:
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
Definitions of terms begining
with the same letter as "Terminal value"
:
Terminal value (See Chapter 40 of the Vernimmen)
When a company is valued using the DCF method, the final, or terminal, value of the company at the end of the explicit horizon is estimated. Terminal value can be derived either from capital employed, revalued or not, or by using the multiples of operating balances, or by discounting to infinity the normative cash flows.
|