Case: FinServe Analytics
Year 5 FCFF is ₹120 crore. WACC is 10%. Long-term growth is 3%. Year 5 EBITDA is ₹180 crore. Exit EV/EBITDA multiple is 8.0x. Year 5 PV factor is 0.621.
Worked examples
One fictional case, two Terminal Value answers.
The numbers are simple so learners can focus on interpretation and method choice.
Trainer question
What should the company look like after Year 5 for these assumptions to make sense?
Gordon Growth Method
120 × 1.03 / (10% − 3%) = ₹1,765.7 crore
Discounted value: ₹1,765.7 crore × 0.621 = ₹1,096.5 crore.
Exit Multiple Method
₹180 crore × 8.0x = ₹1,440.0 crore
Discounted value: ₹1,440.0 crore × 0.621 = ₹894.2 crore.