Terminal value

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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.

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