DCF terminal value dependence

How much of the valuation comes from assumptions beyond year five that are hard to observe?

Valuation VAL-031 Donut Sample

Sample data. Every number, symbol and holding on these pages is generated sample data dated 2026-10-16, used only to illustrate layout and method for educational and informational purposes. It is not market data, backtest output or a forecast, and the analytics described in the specifications are not running.

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0700.HK Tencent Holdings | Hang Seng Index | 2025-10-16 – 2026-10-16 | HKD

Highest item: Forecast year 2
37 %
Lowest item: Terminal value
3 %
Average
16.7 %
Number of items
6 items

Explicit period and terminal value

Terminal value as share of enterprise value (%) (Donut)

Present value by year

Present value of explicit cash flows (million) (Bar)

Long-term assumptions

Terminal value as share of enterprise value (%) and Present value of explicit cash flows (million) (Table)

Sample data rows

Source of value contributionTerminal value as share of enterprise value (%)Present value of explicit cash flows (million)Data date (sample)
Forecast year 1 26.2 4154 2026-10-16
Forecast year 2 37 939 2026-10-16
Forecast year 3 16.9 2511 2026-10-16
Forecast year 4 5 923 2026-10-16
Forecast year 5 11.9 4167 2026-10-16
Terminal value 3 1469 2026-10-16