Terminal Value

Avino Silver & Gold Mines Ltd. (ASM)


-0.00 (-0.62%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.85
Free cash flow (t + 1) -1.95
Terminal Value -22.02
Present Value of Terminal Value -13.16

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