This workout asks us to calculate the terminal value EBITDA multiple If we have a look at what we've been given to us, we need to calculate the terminal value here and we've been given a long term growth rate and a WACC So I'm going to have to use the growing perpetuity method to calculate terminal value The growing perpetuity method says take your free cash flow in the last detail cash flow and multiply that by one plus the growth rate I then need to divide that all by my WACC minus G (minus that growth rate) And that gets me a terminal value using the growing perpetuity method of 9,775 Now imagine that I've also just done a multiple method My multiple method involved using a multiple of six, I've imagined that (a multiple of six) I want to check that my growing perpetuity terminal value I want to check what multiple is implied by this figure here, if it's close to six then I know my two approaches for calculating the terminal value are supporting each other So let's imply an EV/EBITDA multiple I'll take my terminal value, I'll then divide that by EBITDA I'm hoping for a figure close to six? Yes I've got it, 5.7 So even though my growing perpetuity method here gave me an implied multiple of 5.7, that's pretty close to the multiple method I imagine I use the multiple method, which used a multiple of six So therefore I'm pretty happy that those two method are supporting each other