easy · Investment Banking valuation-core

When calculating the Terminal Value in a DCF using the Exit Multiple Method, which EBITDA should be used?

1. The LTM EBITDA at the time the model is built.
2. The EBITDA of the final year of the projection period.
3. The EBITDA of the year following the final projection year (Year n+1).
4. The average EBITDA over the entire projection period.

Sign up free to see the explanation and track your rank →