Pledrea Inc. has EBITDA at the forecast horizon of $10,000. Its EBITDA multiple is 12. What is the terminal value of the firm at the forecast horizon?
A) $100,000
B) $110,000
C) $120,000
D) $130,000

Name: Pledrea Inc. has EBITDA at the forecast horizon of $10,000. Its EBITDA multiple is 12. What is the terminal value of the firm at the forecast horizon? A) $100,000 B) $110,000 C) $120,000 D) $130,000
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Question

Quizplus · Accepted Answer

C) Terminal value = EBITDA at horizon × EBITDA multiple
Terminal value = $10,000 × 12 = $120,000