Function Names
tvDescription
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This funtion calculates the terminal value based on the perpetual growth method.
tv = FCFn * (1+growth rate) / (WACC - growth rate)
Call as: function
Restrictions
Indirect parameter passing is disabled
Parameter count
3
Parameters
| No. | Type | Description |
|---|---|---|
| 1 input |
numeral | FCFn Free Cash Flow value at year n |
| 2 input |
numeral | Growth Rate Perpetual growth rate of Free Cash Flow (FCF) |
| 3 input |
numeral | WACC Working Average Cost of Capital (WACC) |
Return value
| Type | Description |
|---|---|
| numeral | TV Calculated Terminal Value |
Exceptions
Division by zero error happens if WACC equals to the perpetual growth rate
Examples
echo( tv ( 100, 0.05, 0.12 ) ); // Returns 1500Output
1500