The Residual Value of an asset is the estimated value at the end of the useful life of the asset. For a fixed asset, the residual value connotes the recoverable or salvage value at the end of the depreciation period. For a business entity or an intangible asset, the residual value is the value of economic benefits or cash flows beyond the discrete forecast period converted in fair market value by applying an appropriate discount factor. Residual value is also referred to as the terminal value.