terminal value

listen to the pronunciation of terminal value
الإنجليزية - التركية
(Ticaret) vade değeri
الإنجليزية - الإنجليزية
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
The future value of an uneven cash flow stream
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 Usually, a perpetuity formula is used For example, suppose we forecast cash flows through year 10 We make an assumption that year 11 and beyond will be no growth (except for inflation) If the cash flow forecast for year 11 is 100, the firm's discount rate is 12%, and inflation is expected to be 2%, we use the formula V10 = CF11/(disc rate-inflation) Hence, the value is 100/(0 12 - 0 02) that is 1,000 This cash flow needs to be brought back to present value using the formula 1000/(1 12)10, which is 321 97 Note the importance of the inflation assumption
terminal value

    الواصلة

    ter·mi·nal val·ue

    التركية النطق

    tırmınıl välyu

    النطق

    /ˈtərmənəl ˈvalyo͞o/ /ˈtɜrmənəl ˈvæljuː/
المفضلات