Terminal Value

Horizons S&P 500 Index ETF (HXS.TO)

$55.35

+0.31 (+0.56%)
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 S&P 500 Index ETF’s cash flows after that period (if we don’t include this, we would have to assume that Horizons S&P 500 Index ETF stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.