medium10 pts · first answer countsvaluationterminal-valuedcf

Cross-checking the terminal value

A DCF uses the perpetual growth method for terminal value. What is a good sanity check on the result?

A.Compute the implied exit multiple and compare it with peersB.Check that terminal value is less than year 1 FCFC.Make sure the terminal growth equals WACCD.Confirm the terminal value is a round number

Discussion 0

Join free to post in the discussion.

Cross-checking the terminal value

Discussion 0

Related questions