What Is the ‘Exit Multiple’ Method for Calculating Terminal Value?

The Exit Multiple method calculates Terminal Value (TV) by multiplying a key financial metric of the protocol in the final forecast year (e.g. Protocol Revenue or Total Value Locked) by an appropriate valuation multiple (e.g.

P/S or MC/TVL). This multiple is derived from comparable, mature public companies or protocols.

This method is often preferred in crypto because it avoids the sensitive perpetual growth rate assumption of the GGM, though it relies on finding truly comparable, mature assets.