Terminal Value

Schwab International Small-Cap Equi... (SCHC)


+0.07 (+0.25%)
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 Schwab International Small-Cap Equity ETF’s cash flows after that period (if we don’t include this, we would have to assume that Schwab International Small-Cap Equity ETF stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.