Terminal Value

iPath GBP/USD Exchange Rate ETN (GBB)


+1.38 (+3.84%)
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 iPath GBP/USD Exchange Rate ETN’s cash flows after that period (if we don’t include this, we would have to assume that iPath GBP/USD Exchange Rate ETN stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.