For the terminal value Gordon growth formula, do you need to discount that value to PV? So. If you have a model that goes to 2040, and you use 2040 FCF in the Gordon Growth formula, do you need to take that value and discount it back to 2023 separately so you treat TV as if it was 2040 cash flow
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Yes. Any type of terminal value in the future (whether from Gordon growth, multi-step growth, or a multiple), you will need to discount it to current year.
yeah its a two step pv, you first find the pv of tv from the standpoint of 2040 and then discount it back to 23 pv
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