THE PLAYGROUND
What is the future worth today?
Change an assumption. Feel the valuation move.
LIVE EXPERIMENT
What is the future worth today?
Enterprise value818.3
Before you move a sliderHow much of this enterprise value depends on the terminal period?
Equity value = EV 818.3 − net debt 200 = 618.3
READ THE MECHANISM
The terminal period contributes 71.1% of enterprise value. A small change to a persistent growth or discount-rate assumption can dominate a detailed five-year forecast. A model output is conditional on its assumptions, not a quoted market price.
Model assumptions & units
Hypothetical $m. End-of-year unlevered cash flows, constant WACC, five explicit years, perpetual growth thereafter. WACC must exceed terminal growth. Simplified equity bridge assumes no other claims or nonoperating assets.