Terminal Value

Lypsa Gems & Jewellery Limited (LYPSAGEMS.NS)

4.25 ₹

-0.10 (-2.30%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.66
Free cash flow (t + 1) -22.22
Terminal Value -607.12
Present Value of Terminal Value -461.02

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