Termination Date

Categories: Company Management

When it ends. The contract. The deal. The lease. Your life.

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Finance: What is terminal value?0 Views

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finance a la shmoop what is terminal value and no it's not the value of a [Grave stones with for sale signs on]

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dead person nor of a disease that kills you um terminally nor is it what gate 17

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be at LaGuardia would sell for on eBay nope terminal value is the end value of [Stop signs appearing]

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something and in our little fancy finance world here

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it applies usually to a stream of cash flows and then that company is sold at [Two men looking at a screen showing stock prices]

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the end for some terminal value sperm bank of America is storing progeny for [The words 'illustrative example time' fall out of a piggy bank]

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the future on a cash flow basis it will break even for five years and at the end

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of that time period it will sell for an orgasmically wonderful price of 1 [The bank moves to the end of the timeline and a sold sign appears]

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million dollars that million dollars is its terminal or end value and it can be [Pile of cash]

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discounted back for time and risk to present value dollars and if you care

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about all that we have opuses on the subject all over shmoop and hopefully this

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won't be you by the time you've finished watching them all that's [Grave stone of 'Sally Shmooper']

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terminal value terminal what things are worth at the end

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