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.