What do you do when the cash flows of a firm are negative but the terminal value is positive?
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Wdym "what do you do"? What actually is your question lol
You should project your model until cash flow becomes positive and stabilises a bit and then do your terminal value. If your cash flows for the next 5 years are all negative then there is 0 credibility in your positive terminal value. If your projections show cash flow positive from year 6 onwards (implying that you should extend the length of your projections past the typical 5 years to show it going positive) then it still isn't that convincing but its better than doing 5 years of cash flow negative projections then suddenly showing a positive terminal value.
(ignore title, not intern)
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