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Terminal Value Calculation under DCF method of Valuation

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This document provides a comprehensive guide to calculating Terminal Value (TV) within the Discounted Cash Flow (DCF) valuation method. It details two primary approaches: the Perpetuity Growth Model and the Exit Multiple Method, explaining their formulas, key considerations, and providing worked examples. The guide also covers factors influencing TV, best practices for estimation, and its practical applications across various financial scenarios, making it essential for anyone involved in business valuation.

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