How to Calculate Terminal Value using Perpetuity Method?
Terminal Value using Perpetuity Method calculator uses Terminal Value = Free Cash Flow/(Discount Rate-Growth Rate) to calculate the Terminal Value, The Terminal Value using Perpetuity Method formula is defined as the present value of all future cash flows of a business or an investment beyond a certain point in the future. Terminal Value is denoted by TV symbol.
How to calculate Terminal Value using Perpetuity Method using this online calculator? To use this online calculator for Terminal Value using Perpetuity Method, enter Free Cash Flow (FCF), Discount Rate (DR) & Growth Rate (g) and hit the calculate button. Here is how the Terminal Value using Perpetuity Method calculation can be explained with given input values -> 10169.49 = 120000/(12-0.2).