Question: walistreetprep.com / wip _ exam / def - modeling - txam - v 2 fcourse _ jde 3 5 0 7 9 Niew Chrome mailuble
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The discounted value of the Terminal Value using the Perpetuity method in your DCF analysis appears too low. The mistake could be:
You forgot to grow the last projected year's UFCF by one year before calculating the Terminal Value
Your estimated EVEBITDA multiple for the Terminal Value is too low
Your Equity Risk Premium needs to be reduced
You should discount the Terminal Value over more years
You should subtract the riskfree rate while calculating the Cost of Equity to decrease the WACC
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