Hello! Can you tell me the discounted period time to calculate terminal value in DCF valuation?

Question

anonymous · Answer

It actually depends on the asset characteristics of the company in question,
say you are valuing an natural resource company which has 30 year lease for mining and you have data for expected earnings for the entire period of 30 years than you use entire 30 years as discounting period.
r else we make appropriate assumptions for growth rate , discount rate and earnings and use these data in perpetuity equation= cf/dr-gr.