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.