Find out why investors use the terminal value, why the terminal value is discounted to the present day, and how it relates to discounted cash flows.

Key Insights IDEX's estimated fair value is US$241 based on 2 Stage Free Cash Flow to Equity IDEX's US$165 share ...

Key Insights Using the 2 Stage Free Cash Flow to Equity, Feintool International Holding fair value estimate is ...

Divide the cash flow in the next year from Step 3 by your Step 4 result to calculate the residual value. Concluding the example, divide $51,000 by 0.08 to get a $637,500 residual value.

One of the most common mistakes your likely to come across in mid-market transactions is around the concept of Terminal Value, or TV.

Today we will run through one way of estimating the intrinsic value of Activision Blizzard, Inc. (NASDAQ:ATVI) by estimating the company's future cash flows and discounting them to their present ...

Key Insights Using the 2 Stage Free Cash Flow to Equity, MYP fair value estimate is S$0.099 Current share price ...

The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$15b.

For a value investor, that means looking more closely at how to value cash flows. What is free cash flow? Believe it or not, as a common-stock holder, you are last in line to get paid.