What Is the Gordon Growth Model and Its Applicability to Crypto Terminal Value?

The Gordon Growth Model (GGM) is a method for calculating terminal value by assuming cash flows grow at a constant, perpetual rate (g). TV = (Cash Flow (1+g)) / (Discount Rate – g).

Its applicability to crypto is limited because it requires a stable, predictable perpetual growth rate (g) that is less than the discount rate. Given the high volatility and unpredictable nature of crypto, selecting a realistic 'g' is highly subjective, leading many analysts to use a zero or near-zero growth rate.