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 VictoryShares US Small Cap Volatility Wtd ETF’s cash flows after that period (if we don’t include this, we would have to assume that VictoryShares US Small Cap Volatility Wtd ETF stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.