Terminal Value
S&W Seed Company (SANW)
$0.95
+0.09 (+10.48%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.83 |
| Free cash flow (t + 1) | -25.07 |
| Terminal Value | -654.54 |
| Present Value of Terminal Value | -493.05 |
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of S&W Seed Company’s cash flows after that period (if we don’t include this, we would have to assume that S&W Seed Company stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.