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When you're doing a DCF, a common way to project into the future is to use a terminal. One is the EBITDA multiple. Which can be something like 7x, 8x, 9x, etc.

How do bankers decide what the multiple should be (ie 7,8,9, or whatever)?

Comments (6)

  • Bernankey's picture

    Whats your question? The terminal value should just the perpetuity of cash flows in the stable growth period.

  • Stringer Bell's picture

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  • CNB90's picture