Question

Estimates of a stock's intrinsic value calculated with the free cash flow methodology depend most critically on _______.

Answer 1

Estimates of a stock's intrinsic value calculated with the free cash flow methodology depend most critically on the terminal value used.

What is intrinsic value of stock?

A thing, asset, or financial contract can have intrinsic value if it has some basic, objective value. It may be a good buy or a good sale if the market price is less than that value. There are various approaches for determining a reasonable appraisal of a share's intrinsic value when reviewing equities.

What does terminal value mean?

The worth of a firm, project, or asset after the period for which future cash flows can be predicted is known as its terminal value (TV). After the projected period, terminal value assumes a company will continue to expand at a specific pace indefinitely.

Learn more about intrinsic value: brainly.com/question/14582100

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