Excel: Calculating Terminal Value using Gordon Growth Model
Relatively new to building DCF's and was looking for advice on how I would calculate the Terminal value using the Gordon Growth Model.
I have the company's WACC, growth rate, and final year FCF that I am projecting. Would appreciate any help with what function/formula I would use to calculate this on Excel.
Pretty sure it's your last year cash flow divided by (WACC - Long term growth rate). The larger your growth rate, the smaller the denominator, and thus the larger the terminal value.
Deleniti libero corporis blanditiis fuga nisi id tempore. Voluptatum culpa est repudiandae nobis hic recusandae. Est consequatur iusto eos qui occaecati veniam occaecati. At laborum quis beatae sit.
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...