What Is a Use Tax?

[alenaghose]

I’ve been reading about business valuation and came across the term Terminal Value, but I’m not entirely sure what it means and how it’s used. I understand that it’s an important part of a Discounted Cash Flow (DCF) analysis, but how is it calculated? And what does it represent in the context of valuing a company?


From what I gather, terminal value is supposed to estimate the value of a business beyond the forecast period, but how do we make sure this estimate is accurate? Is there a standard method for calculating it, or does it vary by situation?

 

[robertwilliam]

Use Tax is a self-imposed, self-assessed charge that individuals in the supported industry impose while buying goods or services from out-of-the-states.

 

[BlissCore]

Terminal value is the estimated value of a business outside the forecast period of a DCF analysis. Calculated to reflect all the cash flows in the future beyond the projection period, it may be the perpetuity growth approach or exit multiple approach. Although it is an available estimation, it relies on realistic assumptions of the growth rates and market conditions.