What does terminal mean in accounting?


What does terminal mean in accounting? Essentially, terminal value refers to the present value of all your business's cash flows at a future point, assuming a stable rate of growth in perpetuity. It's used for a broad range of financial metrics, but most prominently, terminal value is used to calculate discounted cash flow (DCF).


What is a terminal and how does it work?

A terminal is a window into which you can type commands that are then executed by your computer's operating system. The cursor point in the terminal where you type is called the command line, and so a terminal is sometimes also referred to as a command-line interface (CLI).