Terminal Value calculation in a DCF
This is my first post and being used to read your high quality answers I am sure you will be able to bring me your lights
When we in a we use:
(the last cash flow of our explicit horizon*g)/( -g).
Then we have to discount this Terminal Value, and my question is: are we going to use the number of years of the explicit horizon or this number +1?
For example, we have a 5 year DCF. Do we discount the terminal value by 5 or 5+1=6?
Thank you for your answer