---
id: "quote-terminal-value"
type: "quote"
source_timestamps: ["§ Corporate Math"]
tags: ["valuation", "corporate-finance"]
related: ["concept-terminal-value-collapse"]
speaker: "Toby E. Stuart"
speakers: ["Toby E. Stuart"]
quote: "If AI fog brings into question the long-term viability of a company's core product or service, then we must also question whether it will earn its terminal value. In turn, if we doubt the terminal value, the valuation collapses. The company is simply worth less."
sources: ["futures"]
sourceVaultSlug: "hbr-seg-futures"
originDay: 2
articleStem: "hbr-foci-72-future-ai-fog"
sourceUrl: "https://hbr.org/2026/04/the-future-is-shrouded-in-an-ai-fog"
sourceTitle: "The Future Is Shrouded in an AI Fog"
---
# The Collapse of Terminal Value

The binary chain of reasoning behind [[concept-terminal-value-collapse]].

> "If AI fog brings into question the long-term viability of a company's core product or service, then we must also question whether it will earn its terminal value. In turn, if we doubt the terminal value, the valuation collapses. The company is simply worth less."
> — [[entity-toby-e-stuart|Toby E. Stuart]]

Requires [[prereq-dcf-mechanics]] to fully grasp.