Terminal Value
Maris-Tech Ltd. (MTEK)
$0.93995
+0.02 (+2.24%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.52 |
| Free cash flow (t + 1) | -10.87 |
| Terminal Value | -308.89 |
| Present Value of Terminal Value | -236.12 |
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Maris-Tech Ltd.’s cash flows after that period (if we don’t include this, we would have to assume that Maris-Tech Ltd. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.