Terminal Value

Enphase Energy, Inc. (ENPH)


+0.39 (+0.21%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.54
Free cash flow (t + 1) 4,737.81
Terminal Value 55,477.87
Present Value of Terminal Value 33,614.18

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