DCF Terminal Value Calculator Gordon Growth

Calculate DCF terminal value using the Gordon Growth Model: TV = FCFn x (1+g) / (WACC - g). Terminal value typically represents 60-80% of total DCF enterprise value.

Principal ($)
Annual Rate (%)
Years
Compounding / Year
$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.
Advertisement

How It Works

Calculate DCF terminal value using the Gordon Growth Model: TV = FCFn x (1+g) / (WACC - g). Terminal value typically represents 60-80% of total DCF enterprise value

Each component has a specific meaning:

  • Gordon Growth Model: TV = FCFn x / — The gordon growth model: tv = fcfn x / recorded for the scenario being assessed.

Note: Interpret the terminal value dcf result against the thresholds and context described above.

How to Use

Enter the Gordon Growth Model: TV = FCFn x / for the scenario you are assessing. Calculate DCF terminal value using the Gordon Growth Model: TV = FCFn x (1+g) / (WACC - g). Terminal value typically represents 60-80% of total DCF enterprise value. Use the terminal value dcf result to inform your calculation.

Frequently Asked Questions