Terminal Value

Horizons Active Cdn Bond ETF (HAD.TO)


+0.03 (+0.34%)
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 Horizons Active Cdn Bond ETF’s cash flows after that period (if we don’t include this, we would have to assume that Horizons Active Cdn Bond ETF stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.