Terminal Value

AirBoss of America Corp. (BOS.TO)


-0.33 (-3.80%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.75
Free cash flow (t + 1) 42.30
Terminal Value 545.87
Present Value of Terminal Value 342.82

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