Utilize two different methods to estimate terminal (continuous) value in your discount cash flow valuation for GM

Finance Apr 25, 2023

Utilize two different methods to estimate terminal (continuous) value in your discount cash flow valuation for GM. Generally, this means using either an EV/EBITDA multiple or an EV/FCFF multiple as one method and then using the constant perpetual growth formula as the other approach, which is FCFF for year 11/ (WACC-g) when you have projected 10 years of free cash flows.