Terminal Value

Network-1 Technologies, Inc. (NTIP)


-0.02 (-0.88%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.15
Free cash flow (t + 1) 312.65
Terminal Value 9,925.52
Present Value of Terminal Value 7,721.59

Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Network-1 Technologies, Inc.’s cash flows after that period (if we don’t include this, we would have to assume that Network-1 Technologies, Inc. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.