Terminal Value Calculator

Terminal value = final-year cash flow x (1 + growth rate) / (discount rate - growth rate). This is the Gordon growth (perpetuity growth) method, which assumes cash flow grows at a constant rate forever after your explicit forecast period. Defaults: $10,000 final cash flow, 3% growth, 10% discount rate gives a terminal value of $147,142.86.

Terminal value is stated as of the last forecast year, not today. This page also discounts it back to the present using the years field, so you can add it directly to the present value of your explicit forecast cash flows.

The formula divides by (discount rate - growth rate), so a growth rate at or above the discount rate makes the denominator zero or negative, producing a meaningless or infinite result. The calculator blocks this case with an alert instead of showing a broken number.

No. An exit multiple applies a market multiple (like EV/EBITDA) to a final-year metric instead of assuming perpetual growth. Both are standard DCF terminal value methods; this page only implements the growth-perpetuity version.