Horizon Value Calculator Tool

Horizon Value Calculator

Horizon Value Calculator

Horizon Value Calculator

Component Description
Free Cash Flow The total free cash flow expected at the end of the forecast period.
Growth Rate The expected growth rate of free cash flows beyond the forecast period.
Discount Rate The rate used to discount future cash flows to their present value.
Horizon Value The value of a business or project at the end of the forecast period, also known as terminal value.
Formula Horizon Value = Free Cash Flow / (Discount Rate – Growth Rate)
Purpose Used to estimate the value of a business or project at the end of the forecast period, considering future growth and discount rates.

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