Terminal Value is the value of a company, its true potential and value, beyond the forecasted period for which future cash flows can be normally estimated.

At Trust Mutual Fund, we posit Terminal Value as a Sociological concept rather than a Financial concept.

Terminal Value Investing is a dynamic way of looking at companies beyond financial analysis and recognising the various sociological, economic and cultural aspects at play, which have implications far beyond the conventional financial analysis.

In philosophy, terminal value, often referred to as intrinsic value, is a complex idea, which is nebulous, subjective and changes over time, based on various factors and perspectives.

Our endeavour is to examine companies, their policies and actions, in the context of value creation and migration, which lead to favourable outcomes for the investors.

In Terminal Value investing framework, we look at companies through the prism of

• Megatrends
• Leadership
• Intangibles

Megatrends provide a long period of conducive environment for companies, which an agile and hungry leadership can use to create intangible assets like brand, culture and customer satisfaction that increase the value of the company.

In the New Age companies that dominate the market capitilisation across the world, it is clear that the valuations are driven more by intangible assets and lesser by physical properties. While Terminal Value Investing is a time tested formula for successful investing, it is even more relevant in the current times. Terminal Value Investing helps identify the true North Star and helps investors navigate the short term volatilities with equanimity, patience and wisdom.