Business Studies, asked by jassa4988, 1 year ago

How to calculate terminal value in discounted cash flow?

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Answered by kpushpendra693

The formula to calculate the terminal value is: The present value (PV) of the terminal value is then added to the PV of the free cash flows in the projection period to arrive at an implied firm value. A publicly-traded comparable company's multiples are used in the calculation.

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