Do Not Rest a Valuation on an Unexamined Terminal Value
Block ID: acd8a66f-aa8c-4bb8-88b4-25c37a6173cd
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Do not let a terminal or perpetuity value dominate a valuation without examining it. When the terminal value is the overwhelming majority of the answer, the result rests almost entirely on two fragile assumptions — the terminal growth rate and the discount rate — rather than the forecast analysis. Do not present such a valuation without disclosing the split and stress-testing the terminal assumptions.
financialnegativeconstraintvaluation
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Submitted by James P FounderMod via mcp · 2026-07-19