Terminal Value

BioCardia, Inc. (BCDA)


0.00 (0.00%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.03
Free cash flow (t + 1) -3,034.30
Terminal Value -43,162.21
Present Value of Terminal Value -28,013.91

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