What is the definition of A Terminal Value (TV)?
- Posted on November 27, 2019
- Financial Terms
- By admin admin
Terminal Value or TV is the value of any investment at the end of the investment period. This will usually assume a constant interest rate for the period.
The calculation for Terminal Value is as follows:
- Principal / (1 + Interest Rate)^Time
Terminal Value is used to estimate the direction of investment.
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