Investors can use several different formulas when calculating the terminal value of a firm, but all of them allow—in theory, at least—for a negative terminal growth rate. This would occur if the cost of future capital exceeded the assumed growth rate. In practice, however, negative terminal valuations don’t actually exist for very long. A company’s … Negative growth is a term that is used to describe a reduction in the economic circumstances of a business, industry, or even the economy of a nation. The term indicates that for the period of time under consideration, there has been a drop in economic growth that serves as an indicator of a shift that is either already underway or is anticipated to commence in a short period of time. The experiences of Denmark and Sweden, in particular, show that negative rates cause an increase in property prices. In times of uncertainty, which negative rates tend to imply, purchasing tangible assets–such as houses at rock-bottom rates–becomes more attractive than riskier investment choices.