(v5220.00) Present Value of Residual Value

Portion of total corporate value attributable to operations beyond the final year of the forecast period, expressed in today's currency. It is calculated by discounting the Future Value of Residual Value (v5210) by the Discount Factor (v5000.01).

The value of a company is determined by expectations of what will happen during and after the forecast period. The portion of Corporate Value (v5060) contributed by expectations about the post-forecast period is called the residual value, and, in present value terms, the Present Value of Residual Value (v5220.00).