Unlevered FCF growth too high and termina value as a % of Implied value too high

Doing a 10-year Unlevered DCF of a target.

The PV of the terminal value is 87% of the implied enterprise value.

The Unlevered FCF growth rate in the last year of the explicit forecast period is 30%.

Are these 2 numbers something that CAN happen with valuations and are still reasonable or I should either:

1) Extend the explicit forecast period;

2) Decrease my revenue drivers.

Thanks

2 Comments
 

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