Terminal Value

Nexus Industrial REIT (NXR-UN.TO)


+0.06 (+0.63%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.40
Free cash flow (t + 1) 207
Terminal Value 6,088.12
Present Value of Terminal Value 4,680.37

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