# "Terminal value" - a company's worth beyond the next 10 years based on estimated earnings - accounts for about 75% of the S&P 500's equity value, near a 25-year high.

*business · news · 2026-04-28 · Devdiscourse*

## Key points

- Terminal value comprises 75% of S&P 500 equity value, near a 25-year high.
- S&P 500 software and services index has dropped about 17% this year on AI disruption fears.
- Big four cloud companies will spend around $600 billion on AI in 2024, straining cash flows.
- A 1% drop in long-term growth assumptions could reduce S&P 500 enterprise value by approximately 15%.
- Only 5% of S&P 500 companies discuss financial metrics beyond five years in earnings calls.

**Companies:** Alphabet, Microsoft, Meta, Amazon
**Countries:** United States

[Read the full story on Devdiscourse](https://www.devdiscourse.com/article/education/3889755-update-2-ai-disruption-puts-focus-on-long-term-value-of-us-equities-goldman-sachs-says)

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