Background Note | HBS Case Collection | June 1998

Note on Alternative Methods for Estimating Terminal Value

by William E. Fruhan Jr.

Abstract

Reviews basic techniques for estimating terminal value in the valuation of businesses. Among the techniques discussed are perpetuities, growing perpetuities, use of multiples, and liquidation value. A rewritten version of an earlier note.

Keywords: Financial Liquidity; Bonds; Valuation;

Citation:

Fruhan, William E., Jr. "Note on Alternative Methods for Estimating Terminal Value." Harvard Business School Background Note 298-166, June 1998.