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 3 years ago
company being valued is in industry undergoing change; in 5  10 years business model in industry will be totally different, company unlikely to adapt. correct to: a) value flows for next 5 years with no growth, + b) value flows for following 5 years with annual growth (10%), c) assign no terminal value? thanks
 3 years ago
company being valued is in industry undergoing change; in 5  10 years business model in industry will be totally different, company unlikely to adapt. correct to: a) value flows for next 5 years with no growth, + b) value flows for following 5 years with annual growth (10%), c) assign no terminal value? thanks

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Aswath
 3 years ago
Best ResponseYou've already chosen the best response.0If you feel the company will not adapt, you should estimate cash flows from years 610 and then either assume that the firm liquidates or assume that the firm will shrink over time (a negative terminal growth rate)
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