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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

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?”

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Startup Valuation: The Ultimate Guide

Equidam

23] Terminal Value Approaches: Since forecasting cash flows indefinitely is impractical, DCF methods estimate cash flows for an explicit period (e.g., 3-5 years [3] , [24] ) and then calculate a “Terminal Value” (TV) representing the value of all cash flows beyond that point.