Terminal Value

iPath S&P GSCI Total Return Index E... (GSP)

$21.9734

-0.09 (-0.39%)
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 S&P GSCI Total Return Index ETN’s cash flows after that period (if we don’t include this, we would have to assume that iPath S&P GSCI Total Return Index ETN stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.