easy · Investment Banking
When calculating the Terminal Value in a DCF using the Exit Multiple Method, which EBITDA should be used?
- The LTM EBITDA at the time the model is built.
- The EBITDA of the final year of the projection period.
- The EBITDA of the year following the final projection year (Year n+1).
- The average EBITDA over the entire projection period.
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