Terminal value
It is not practical to forecast cash flows for an infinite number of future years. It is usual to end the cashflow used in a DCF with a terminal value as the final year cash flow.
Terminal value
The value at maturity.
Similar financial terms
Terminal Elevator
An elevator located at a point of greatest accumulation in the movement of agricultural products which stores the commodity or moves it to processors.
Terminal Value
Definition
The residual value of a business at the end of a discrete income projection period used in the Discounted Cash Flow business valuation method.
FUTURE VALUE (TERMINAL VALUE) - The value at some future time of a present amount of money, or a series...
FUTURE VOLATILITY - A prediction of what volatility may be like in the future.
Terminal value
The value of a bond at maturity, typically its par value, or the value of an asset (or an entire
firm) on some specified future valuation date.
Variance rule ...
Terminal Value - Refers to the financial remainder, residual amount, or end-of-process (life) valuation. Some examples are the remaining value of an expired option or hedge position.
Terminal Value
The International Centre for Settlement of Investment Disputes
The International Monetary Market ...
Index method Technique to calculate rates of return that is based on initial and terminal values. Index model A model of stock returns using a market index such as the S&P 500 to represent common or systematic risk factors.
Simple compound growth method A method of calculating the growth rate by relating the terminal value to the initial value and assuming a constant percentage annual rate of growth between these two values.
terminal value The value of an item at the end of a specified time period. Some examples of... terminate To end or discontinue an agreement or position. This term is used most often in relation to contracts.
The main difficulties of this method is the determination of the explicit forecast of cash flows, estimating the cost of capital, the calculation of terminal value (TV) and the proper discount rate.
If as part of our stock research we assume unrealistic growth rates (or terminal value), or discount rates, you will get an unrealistic intrinsic value result.
Their terminal value (at exercise or expiration) depends upon the value of the underlier, not only at that time, but also at prior points in time.
The concept is closely linked to terminal value and terminal growth rate in valuation.
[edit] Detailed description ...
Calculating a growth rate by relating terminal value to initial value and assuming a constant percentage annual rate of growth between the two values.
Simple interest ...
The expected net operating income (NOI) per year is divided by the terminal cap rate (expressed as a percentage) to get the terminal value.
 See also: Values, Banks, Tax shield, Saving, Expense
  
|
RSS
