Terminal Growth Rate
The perpetual growth rate applied after the explicit forecast in a DCF. It cannot exceed long-run nominal GDP growth, because a company growing faster than the economy forever eventually becomes the economy. In practice: forecast real GDP growth plus forecast inflation is the ceiling to argue against. A terminal value that is more than about three-quarters of enterprise value is a sign the assumptions need re-examining.
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This term comes up constantly in valuation interviews and on the desk.
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