Terminal Value

Terminal Value (TV)
Terminal value (TV) is the estimated value of an investment at the end of a specified period, calculated using a given rate of interest. It represents the future worth of an initial investment assuming a specific growth rate.
Terminal Value (TV)
Terminal Value (TV) is an essential financial metric used to estimate the value of a business beyond the forecast period in a discounted cash flow (DCF) analysis.

Accounting Terms Lexicon

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