Difference between revisions of "Terminal value"
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==Definitions== | ==Definitions== | ||
According to [[Organizational Behavior by Robbins and Judge (17th edition)]], | According to [[Organizational Behavior by Robbins and Judge (17th edition)]], | ||
| − | + | :[[Terminal value]]. A desirable end-state of existence; the goal a person would like to achieve during his or her lifetime. | |
| + | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
| + | :[[Terminal value]]. Value of operations at the end of the explicit forecast period; equal to the present value of all free cash flows beyond the forecast period, discounted back to the end of the forecast period at the weighted average cost of capital. | ||
==Related concepts== | ==Related concepts== | ||
Latest revision as of 13:49, 28 October 2019
Terminal value is a desirable end-state of existence; the goal a person would like to achieve during his or her lifetime.
Definitions
According to Organizational Behavior by Robbins and Judge (17th edition),
- Terminal value. A desirable end-state of existence; the goal a person would like to achieve during his or her lifetime.
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Terminal value. Value of operations at the end of the explicit forecast period; equal to the present value of all free cash flows beyond the forecast period, discounted back to the end of the forecast period at the weighted average cost of capital.
