In DCF analysis, neither the perpetuity growth model nor the exit multiple approach is likely to render a perfectly accurate estimate of terminal value. The choice of which method of calculating terminal value to use depends partly on whether an investor wishes to obtain a relatively more optimistic estimate or a relatively more conservative estimate. Generally speaking, using the perpetuity growth model to estimate terminal value renders a higher value. Investors can benefit from using both terminal value calculations and then using an average of the two values arrived at for a final estimate of NPV.