Terminal Value

Destination XL Group, Inc. (DXLG)


+0.04 (+0.85%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.56
Free cash flow (t + 1) 16.03
Terminal Value 288.37
Present Value of Terminal Value 200.31

Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Destination XL Group, Inc.’s cash flows after that period (if we don’t include this, we would have to assume that Destination XL Group, Inc. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.