What is Terminal Value?
In this glossary, Terminal Value refers to: The estimated value of an asset, business, or project at the end of a forecast period, based on a perpetuity growth model or exit multiple. Used in discounted cash flow (DCF) and valuation models.
How is Terminal Value used in finance?
In finance communication, this term appears in contexts such as: "Terminal value often represents a significant portion of total enterprise value in DCF models for business valuation."
Why does Terminal Value matter in finance?
Terminal Value matters because it supports clear communication in Analysis contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.
Who uses Terminal Value?
Terminal Value is mainly used by Financial Analysts, Bankers, and Traders.
What category does Terminal Value belong to?
In this glossary, Terminal Value is grouped under Analysis. Related pages in this category explain adjacent procedures, commands and operational concepts.
Where does this definition come from?
This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.
