If the constant growth model is used to calculate the value of a target company,the terminal value is an insignificant cash flow analysis.

Constant Growth Model

A method for valuing a stock by assuming a constant rate of dividend growth, often used in financial analysis to estimate the present value of future dividends.

Terminal Value

An estimate of an asset's value at the end of a projection period, often used in discounted cash flow analysis.

Cash Flow Analysis

The examination of a company's inflows and outflows of cash to evaluate its financial health and operational efficiency.