Book Risk Premium Terminal Value 
Equidam
APRIL 26, 2025
Key value drivers include intangible assets like intellectual property, the strength and experience of the founding team, the perceived size of the market opportunity, network effects, brand recognition, and, critically, the projected ability to generate significant cash flows in the future.
Valutico
OCTOBER 20, 2022
Well, the short answer is after that forecast period where we estimate each year’s cash flows then discount them, we add a single number at the end to account for all the theoretical years in the future, called the Terminal Value (TV). Explaining The Terminal Value. How do I calculate the Terminal Value?”
Valutico
AUGUST 10, 2023
However, market information required for CAPM, such as beta coefficients and risk premiums, may not be available for SMEs. To solve this, approximations are used, and an illiquidity premium is added to the rate to account for the lack of market for SME shares.
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