Terminal Value

BGSF, Inc. (BGSF)

$12.77

-0.28 (-2.15%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.14
Free cash flow (t + 1) 12.26
Terminal Value 150.57
Present Value of Terminal Value 92.90



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