What’s on the Terminal Value poster
The rule, 3 worked examples, and the mistake everyone makes.
- Terminal value captures all cash flows beyond the explicit forecast horizon.
- TV = CF(n+1) ÷ (r − g)
- g = 2%, r = 9% = TV = CF ÷ 0.07
- g = 5%, r = 9% = TV = CF ÷ 0.04
- g ≥ r = Infinite value
- Common mistake: Using an optimistic growth rate → Capping g at long-run GDP growth
Sensitivity-test g and r together. A DCF with a single point estimate hides how fragile the answer is.
Questions about the Terminal Value poster
- What’s on the Terminal Value poster?
- The rule, 3 worked examples, and the mistake everyone makes. Terminal value captures all cash flows beyond the explicit forecast horizon.; TV = CF(n+1) ÷ (r − g); g = 2%, r = 9% = TV = CF ÷ 0.07; g = 5%, r = 9% = TV = CF ÷ 0.04; g ≥ r = Infinite value; Common mistake: Using an optimistic growth rate → Capping g at long-run GDP growth. Sensitivity-test g and r together. A DCF with a single point estimate hides how fragile the answer is.
- Who is the Terminal Value poster for?
- Terminal Value belongs to the Accounting & Finance section rather than to a school year, because business is not something one grade owns. Anyone learning valuation can pin it up — a beginner, a student mid-course, or someone revising years later.
- When should you use the Terminal Value poster?
- Perpetuity growth must be below long-run economic growth. Nothing outgrows the economy forever. A wall chart earns its place by being glanceable from where the work is happening, so Terminal Value belongs on the wall where that business work actually happens, within glancing distance, rather than filed away.
- What other posters go with Terminal Value?
- Discounted Cash Flow, Asset-Based Valuation and Comparable Company Analysis sit alongside Terminal Value in the Accounting & Finance section. Printed together they make a wall rather than a single sheet, which is how a reference set actually gets used.Discounted Cash FlowAsset-Based ValuationComparable Company Analysis
- Is the Terminal Value poster free to download and print?
- Yes. Terminal Value downloads as a free PDF with no account, no email and no watermark, like everything else in the Accounting & Finance section. Print as many copies as you like for a home, a classroom, a library or a tutoring group; reselling the file is the only thing the licence rules out.Read the licence
- What size does the Terminal Value poster print at?
- Terminal Value is a vector PDF laid out for US Letter, and prints on A4 with Fit to page — the same file, no separate download. Because every mark on it is drawn rather than photographed, it stays sharp enlarged to A3, A2 or A1 at a copy shop. Colour carries emphasis only, so a greyscale print of Terminal Value loses nothing.Printing guide
Related posters
Charts that sit alongside Terminal Value on the same wall.
Discounted Cash Flow
Accounting & Finance
Asset-Based Valuation
Accounting & Finance
Comparable Company Analysis
Accounting & Finance
Control & Minority
Accounting & Finance
Sensitivity & Scenarios
Accounting & Finance
Valuing a Startup
Accounting & Finance
The Three Approaches
Accounting & Finance
Valuation in Practice
Accounting & Finance
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