A calculation used to give some value to a business or asset beyond the scope of the current analysis. For example, if I have a business that I know is growing at 10% per year, I might try to estimate the value of this business over the next 10 years. The Terminal Value would be the dollar value I would give the company at the end of those 10 years (beyond my forecast period), so it does not show up as worth $0 at the end of my analysis.