The formula for calculating the exit multiple terminal value is: TV = Financial Metric (e.g., EBITDA) x Trading Multiple (e.g., 10x) Which Terminal Value Method is More Common?

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Terminal Value Calculation = FCFF6 / (WACC – Growth Rate) Numerator of the above formula can also be written as FCFF (6) = FCFF (5) x (1+ growth rate) The revised calculation of terminal value is as follows – Terminal Value = FCFF5 *