Terminal Value

iShares U.S. Aerospace & Defense ET... (ITA)

$110

+0.20 (+0.18%)
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 U.S. Aerospace & Defense ETF’s cash flows after that period (if we don’t include this, we would have to assume that iShares U.S. Aerospace & Defense ETF stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.