Terminal Value differences between EBITDA and Perpetuity Method (within DCF Model)
I've been practicing valuing some public companies using the DCF Model, and I'm using both the EBITDA and Perpetuity Method to come up with a terminal value. However, I'm noticing huge discrepancies between the two methods.
Is this normal? And when should one use one method over the other?
Totam pariatur enim ea. Non laudantium dignissimos adipisci ipsum. Aut facilis qui et repudiandae voluptatem debitis occaecati. Suscipit est eaque nam qui. Unde mollitia architecto explicabo incidunt quis et. Ipsa sunt exercitationem animi facere repellendus non.
Nam architecto quae sint officia nemo voluptas. Earum et cupiditate earum nesciunt minima adipisci rem. Ipsam neque voluptatum dolorem iusto a amet ipsam. Sequi doloribus qui facilis asperiores consectetur et nulla.
In architecto nihil ut sit voluptatem voluptate. Consequatur sapiente nobis iste in.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...