Terminal Value

Valuation

What is Terminal Value?

The estimated value of a business beyond the explicit forecast period in a DCF model. Typically calculated using a perpetual growth rate or exit multiple.

Why Terminal Value matters

Often represents the largest component of a DCF valuation. Small changes in terminal value assumptions can significantly affect the model output.

Where this appears in StockFind

Valuation Models

DCF and Residual Income calculators with assumptions you can see and change. Watch how the estimate moves when you do.

Related terms in Valuation

DCF (Discounted Cash Flow)Intrinsic Value Market Capitalization P/B Ratio (Price-to-Book)P/E Ratio (Price-to-Earnings)P/S Ratio (Price-to-Sales)PEG Ratio Residual Income Model

Definitions are provided for educational and informational purposes only and are not investment advice. Consult a qualified financial advisor before making investment decisions.