Banking Terminal Value Weighted Average Cost of Capital 
Valutico
MAY 6, 2024
This rate typically reflects the weighted average cost of capital (WACC) which accounts for the risk associated with the future cash flows and the capital structure of the company. The terminal value can be estimated using the perpetuity growth model or the exit multiple approach.
Equidam
APRIL 22, 2025
1] Unlike valuing established public companies with long track records and stable earnings, startup valuation operates in a realm of high uncertainty. [2] 8] [10] This process involves intense scrutiny from investment banks and public market investors. Understanding Weighted Average Cost of Capital (WACC).
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