Terminal Value

Ever-Glory International Group, Inc... (EVK)


+0.01 (+1.14%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 0.27
Free cash flow (t + 1) 8.95
Terminal Value -517.49
Present Value of Terminal Value -510.56

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