Terminal Value

LiveXLive Media, Inc. (LIVX)

$3.07

+0.06 (+1.99%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.89
Free cash flow (t + 1) -80,691,423.37
Terminal Value -815,889,012.79
Present Value of Terminal Value -465,237,502.30



Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of LiveXLive Media, Inc.’s cash flows after that period (if we don’t include this, we would have to assume that LiveXLive Media, Inc. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.