What is Terminal value?
The value of all cash flows beyond the explicit forecast. For startups it is usually the majority of value, and it is applied in Week 5 via the Gordon Growth Model (Gordon, 1962).
Where you will use it: this term comes up in the Entrepreneurial Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Entrepreneurial Finance course by Devon Coombs, CPA, MBA.