Which Method Of Calculating Terminal Value Will Give You A Higher Val

1.	Which Method Of Calculating Terminal Value Will Give You A Higher Valuation?
Answer» It's hard to generalize because both are highly DEPENDENT on the assumptions you MAKE. In general, the MULTIPLES Method will be more variable than the Gordon Growth method because exit multiples tend to SPAN a wider range than POSSIBLE long-term growth rates. It's hard to generalize because both are highly dependent on the assumptions you make. In general, the Multiples Method will be more variable than the Gordon Growth method because exit multiples tend to span a wider range than possible long-term growth rates.

Which Method Of Calculating Terminal Value Will Give You A Higher Valuation?

Answer»

It's hard to generalize because both are highly DEPENDENT on the assumptions you MAKE. In general, the MULTIPLES Method will be more variable than the Gordon Growth method because exit multiples tend to SPAN a wider range than POSSIBLE long-term growth rates.

It's hard to generalize because both are highly dependent on the assumptions you make. In general, the Multiples Method will be more variable than the Gordon Growth method because exit multiples tend to span a wider range than possible long-term growth rates.

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