Terminal Value

Charles & Colvard, Ltd. (CTHR)

$0.9799

-0.04 (-3.93%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.83
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 Charles & Colvard, Ltd.’s cash flows after that period (if we don’t include this, we would have to assume that Charles & Colvard, Ltd. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.