Terminal Value
S&W Seed Company (SANW)
$0.961
-0.02 (-1.73%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.38 |
| Free cash flow (t + 1) | -23.01 |
| Terminal Value | -427.72 |
| Present Value of Terminal Value | -299.60 |
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.