Terminal Value

ProShares UltraShort S&P500 (SDS)


-0.67 (-1.54%)
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 ProShares UltraShort S&P500’s cash flows after that period (if we don’t include this, we would have to assume that ProShares UltraShort S&P500 stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.