Wilshire Mutual Funds, Inc. - Small... (DTSVX)
|Growth in perpetuity method:|
|Long-term growth rate|
|Free cash flow (t + 1)||-|
|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 Wilshire Mutual Funds, Inc. - Small Company Value Portfolio’s cash flows after that period (if we don’t include this, we would have to assume that Wilshire Mutual Funds, Inc. - Small Company Value Portfolio stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.