Valuation Questions

kupilisashi
Posts: 2
Joined: Mon Dec 03, 2012 8:54 am

Valuation Questions

Postby kupilisashi » Sat Oct 19, 2013 6:34 am

What percent of total DCF value is usually in the Terminal Value? What proportion did the Terminal Value contribute to the Enterprise Value? Why? What concerns are there?

pradeeppdy
Finance Junkie
Posts: 258
Joined: Thu Sep 20, 2012 3:42 pm

Valuation Questions

Postby pradeeppdy » Sat Oct 19, 2013 8:44 am

It depends because the DCF formula includes terminal value itself.

Present value = CF1/(1+R)^1 + CF2/(1+R)^2...............CFn(includes terminal value for the period you assumed)/(1+R)^n

pradeeppdy
Finance Junkie
Posts: 258
Joined: Thu Sep 20, 2012 3:42 pm

Valuation Questions

Postby pradeeppdy » Sat Apr 05, 2014 10:09 am

It depends upon the figures with respect to the underlying assets. The terminal value can be a big amount or a very small amount also with respect to the total present value.


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