Terminal Value

iShares 1-5 Year Laddered Corporate... (CBO.TO)

$17.42

+0.04 (+0.23%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) -
Free cash flow (t + 1) -
Terminal Value -
Present Value of Terminal Value -



Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of iShares 1-5 Year Laddered Corporate Bond Index ETF’s cash flows after that period (if we don’t include this, we would have to assume that iShares 1-5 Year Laddered Corporate Bond Index ETF stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.