Question

What to do if the terminal value is unreasonable high?

Answer 1

Review all of your calculations there might be an error or a wrong assumption. How unreasonable is it?

Answer 2

discounted terminal value = 70% of total value , perhaps this is not unreasonable after all, if I benchmark this number to mckinsey's range between 56-125%

Answer 3

growth expectation too high? how long is the constant growth away?

Answer 4

The terminal value = perpetuitu. where CF/r-g. nevertheless g must be earned because of reinvestment need. I put the growth = risk free rate.