Terminal value describes the part of a valuation beyond the detailed forecast horizon. For a continuing business, it may be the value of future cash flows after the business reaches a mature state; for a finite project, it may be a residual or liquidation value. The choice depends on the nature of the business, not on the convenience of one formula.[95](#source-cv-terminal)
A model and its limits
In a hypothetical perpetuity model, a next-period cash flow of twelve million roubles with a ten percent rate and three percent growth gives approximately 171.43 million at the end of the forecast horizon. This amount still has to be discounted to the valuation date. It is not money already received.
Perpetual growth must be below the rate and compatible with long-term economics and the reinvestment required. An exit multiple makes a different assumption: a future market valuation of a metric. A large terminal share does not automatically prove an error, but it calls for an especially clear explanation of the continuation. Terminal value does not guarantee a sale price and does not mean that the company will necessarily exist forever.
General financial concepts; not an individual recommendation under Russian jurisdiction.
Source reference retained: cv-terminal.[95](#source-cv-terminal); twelve million roubles, ten percent rate, three percent growth, approximately 171.43 million, discounting to the valuation date, perpetuity-growth and exit-multiple assumptions, reinvestment and sale-price caveats preserved.
Educational material is not individual investment, legal or tax advice.
