Terminal Value
Chicago Rivet & Machine Co. (CVR)
$25.52
+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.