Problems in evaluating expected profits in the distant future as terminal value

Osamu SHINTANI

This paper provides a theoretical study of the behavior of terminal value (TV) in a valuation model. As a result, the accuracy of the value calculated by the valuation model depends on the discount rate, and especially under low interest rates as in recent years, TV accounts for a large proportion of the overall value, so the credibility of the valuation value becomes less reliable.

JOSAI INTERNATIONAL UNIVERSITY BULLETIN  Faculty of Management and Information Sciences 

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