Terminal Value

Chicago Rivet & Machine Co. (CVR)


+0.28 (+1.11%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) -
Free cash flow (t + 1) 1.51
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 Chicago Rivet & Machine Co.’s cash flows after that period (if we don’t include this, we would have to assume that Chicago Rivet & Machine Co. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.