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by ttt333 1663 days ago
The terminal point doesn't necessarily have to apply for the company, or even the financial asset based on the company.

There is an simple model in finance [1] that collapses an infinitely growing stream of cash flows into a finite present value. So to your example of coca-cola, even if you assume they will exist and distribute growing profits forever, you can still find a terminal value.

[1]: https://corporatefinanceinstitute.com/resources/knowledge/va...