Terminal Value

PlayAGS, Inc. (AGS)

$5.42

+0.20 (+3.83%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.71
Free cash flow (t + 1) 48.72
Terminal Value 726.02
Present Value of Terminal Value 478.19



Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of PlayAGS, Inc.’s cash flows after that period (if we don’t include this, we would have to assume that PlayAGS, Inc. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.