Terminal Value

Emerge Commerce Ltd. (ECOM.V)


0.00 (0.00%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.93
Free cash flow (t + 1) 4,236.90
Terminal Value 85,941.16
Present Value of Terminal Value 61,475.69

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