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How Do You Calculate Exit Multiple In DCF?

January 24, 2024 by Ahmed Ali

How Do You Calculate Exit Multiple In DCF? Implied Exit Multiple = Terminal Value / LTM EBITDA. Implied Exit Multiple = (PGM Terminal Value x (1 + WACC) ^ 0.5) / LTM EBITDA. Terminal Value = terminal FCF x (1 + g) / (WACC – g) How do you find the exit multiple for DCF?

What Are Terminal Values?

January 24, 2024 by Amira Khan

What Are Terminal Values? Essentially, terminal value refers to the present value of all your business’s cash flows at a future point, assuming a stable rate of growth in perpetuity. It’s used for a broad range of financial metrics, but most prominently, terminal value is used to calculate discounted cash flow (DCF). What is instrumental