The estimate of a firm's value at the end of the forecast horizon using a valuation multiple is also called its ________.
A) fixed value
B) payback value
C) terminal value
D) none of the above

Question

Quizplus · Accepted Answer

The estimate of a firm's value at the end of the forecast horizon using a valuation multiple is called its terminal value. This represents the assumed value of the firm at the end of the forecast period and is often calculated using a multiple of the firm's earnings or cash flow. A and B are not correct because they are not terms used in this context.

The Estimate of a Firm's Value at the End of the Forecast