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Terminal Value Myth 1: Don't believe in forever? You can't do DCF!
Published 1 week, 1 day ago
Description
In classrooms and textbooks, you are taught that there is only one way to estimate a terminal value and that is to assume cash flows grow at a constant rate forever. That is one way but it is not the only one. In this session, I look at two acceptable alternatives and one that should not (but unfortunately is).
Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/TermValyeMyth1.pdf
Blog Post: http://aswathdamodaran.blogspot.com/2016/11/myth-51-if-you-don-believe-in-forever.html
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