Terminal Value

iShares Morningstar Small-Cap ETF (ISCB)


-0.57 (-1.18%)
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 iShares Morningstar Small-Cap ETF’s cash flows after that period (if we don’t include this, we would have to assume that iShares Morningstar Small-Cap ETF stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.