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Terminus Calculator

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Professional Terminus Calculator for investment valuation. Compute terminal values using DCF, perpetuity growth & exit multiple methods. Perfect for financial analysis.

What Is It?

The Terminus Calculator is a specialized financial tool that computes the terminal value of investments using three industry-standard methods:

  1. Discounted Cash Flow (DCF): Projects future cash flows and discounts them to present value.
  2. Perpetuity Growth: Assumes cash flows grow at a constant rate indefinitely.
  3. Exit Multiple: Applies market-based multiples to financial metrics (e.g., EBITDA).

Ideal for investors, analysts, and business owners evaluating long-term investment viability.

How to Use

  1. Select Method: Choose between DCF, perpetuity growth, or exit multiple.
  2. Enter Parameters:
    • DCF: Initial cash flow, growth/discount rates, projection years.
    • Perpetuity: Final cash flow, perpetual growth/discount rates.
    • Exit Multiple: EBITDA and market multiple.
  3. Calculate: Instantly view terminal value and detailed breakdowns.
  4. Visualize: Explore interactive charts (cash flow projections, sensitivity analysis).

FAQs

Q: Which method is most accurate?
A: DCF suits stable businesses; exit multiples work best with comparable market data.

Q: Why must discount rate > growth rate in perpetuity?
A: Ensures realistic valuations (growth cannot outpace discounting indefinitely).

Q: Can I export results?
A: Yes! Download PDF reports or print directly.

Q: Are taxes included?
A: Currently focuses on pre-tax valuations. For post-tax, adjust cash flows manually.

Key Terms Explained

  • Terminal Value (TV): Present value of all future cash flows beyond the projection period.
  • Discount Rate: Rate used to convert future cash flows to present value (reflects risk/opportunity cost).
  • EBITDA: Earnings before interest, taxes, depreciation, and amortization (common profitability metric).
  • Perpetuity Growth: Assumes cash flows grow forever at a steady rate (typically ≤3%, close to GDP growth).

Why Choose This Tool?

  • Professional: Accurate calculations mirroring financial industry standards.
  • Educational: Clear methodology explanations and visual aids.
  • Adaptable: Compare methods side-by-side for robust analysis.
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