Distinguishing Reversion Value from Terminal Value

By June 25, 2021Tens Blog

Reversion value refers to the estimated value of an asset at the end of the forecast  horizon if the asset is to be sold, which is akin to the terminal value, which refers to the value of the perpetual cash flows beyond the horizon if the asset were held on a going-concern. Reversion value thus takes into consideration the disposition taxes and expenses, while the terminal value does not.