Terminal Value

Cedar Realty Trust, Inc. (CDR)


-0.16 (-0.55%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.24
Free cash flow (t + 1) 22.74
Terminal Value 364.42
Present Value of Terminal Value 245.28

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