Calculate the terminal value of a company

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Calculate the terminal value of a company that has an estimated P/E ratio of 9 and forecast net income as follows.

Year 1: $400,000

Year 2: $500,000

Year 3: $600,000

A company has a terminal value of $15,877,955. Using the VC method, calculate its current value (assume a discount rate of 40% and a five year time frame).

Using the VC method, calculate the current value of the following company today:

The company has a forecast net income of the following:

Year 1: $100,000

Year 2: $200,000

Year 3: $300,000

Year 4: $500,000

P/E ratio of similar companies is 8. Discount rate is 35%.

Reference no: EM132411148

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