Terminal value

Terminal value is the part of a DCF valuation that captures everything the company will generate beyond the last projected year. It is usually computed assuming constant, modest growth in perpetuity, never above the growth of the economy itself. In practice it often accounts for more than half of total value, so its assumptions deserve the same scrutiny as the year-by-year projections.

See the full glossary · What the Celsmar financial terminal is

Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.