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Terminal value (See Chapter 32 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.
Terminal value (See Chapter 32 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.
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