Terminal Value

First Trust Dorsey Wright Momentum ... (DVOL)

$25.0989

+0.57 (+2.32%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) -
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 First Trust Dorsey Wright Momentum & Low Volatility ETF’s cash flows after that period (if we don’t include this, we would have to assume that First Trust Dorsey Wright Momentum & Low Volatility ETF stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.