The discounted value of the Terminal Value (using the Perpetuity method) in your DCF analysis appears too low. The mistake could be:

1. You forgot to grow the last projected years UFCF by one year before calculating the Terminal Value

2. Your estimated EV/EBITDA multiple for the Terminal Value is too low

3. Your Equity Risk Premium needs to be reduced

4. You should discount the Terminal Value over more years

5. You should subtract the risk-free rate while calculating the Cost of Equity to decrease the WACC

Answer Choices:

1 and 2

3 and 4

1 and 3

2, 4, and 5

1, 3, and 5