Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples
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). Let’s pause here to acknowledge the big assumption that ‘interest rates will be 10% every year’.
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