Terminal Value is the value of cash flows post the forecast period to perpetuity and discounting it back with the cost of capital. The Terminal Value generally forms a large part of the valuation of a company. This is the tenth step in the process of valuation. The prime factors affecting the terminal value are the Non-Operating Profit After Tax (NOPAT), Investment Rate (Fixed Assets and Net Working Capital), Risk-Free Rate, Inflation, Terminal Growth Rate, and Discount Rate (WACC).