Terminal Value

NextGen Healthcare, Inc. (NXGN)


-0.03 (-0.15%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.15
Free cash flow (t + 1) 12.31
Terminal Value 200.23
Present Value of Terminal Value 135.33

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