Terminal Value
Parnassus Mid Cap Growth Fund - Inv... (PARNX)
$47.27
+0.94 (+2.03%)
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | - |
Free cash flow (t + 1) | - |
Terminal Value | - |
Present Value of Terminal Value | - |
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Parnassus Mid Cap Growth Fund - Investor’s cash flows after that period (if we don’t include this, we would have to assume that Parnassus Mid Cap Growth Fund - Investor stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.