Exit multiple method

Estimating terminal value by applying a valuation multiple to the final forecast year, as though the business were sold then.

Applying nine times to a terminal-year EBITDA of ₹1,340 crore gives ₹12,060 crore.

The method is intuitive and it smuggles in a circularity, because the multiple you choose already embeds a view of growth and risk. Using today's trading multiple as the exit multiple assumes the business will be as highly valued in year ten as it is now, which for a company currently in favour is a strong assumption.

The disciplined use is as a cross-check. Compute the perpetuity version, back out the multiple it implies, and see whether that multiple is defensible for a mature business.

Two methods that disagree by half are telling you where the model is weak.