Terminal Value

Super League Gaming, Inc. (SLGG)


+0.03 (+6.02%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.75
Free cash flow (t + 1) 64.25
Terminal Value 659
Present Value of Terminal Value 378.13

Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Super League Gaming, Inc.’s cash flows after that period (if we don’t include this, we would have to assume that Super League Gaming, Inc. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.