Terminal value
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.
