Terminal Value

Maris-Tech Ltd. (MTEK)


+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.