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hi, ‘m new here. Just trying to add something here. For residual income valuation models, we do not have TV as such. Because over a period of time, ROE equal r and RI comes to nil. To derive value of RI over a period of time till it comes to nil, we apply persistence factor based on rate at which RI decreases. TV is applicable only when value is going to grow for infinite period which is not the case here.
Correct me, if ‘m on wrong track.