Terminal Value

Fidelity Asset Manager 70% Fund (FASGX)

$25.5

-0.02 (-0.08%)
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 Fidelity Asset Manager 70% Fund’s cash flows after that period (if we don’t include this, we would have to assume that Fidelity Asset Manager 70% Fund stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.