Sol-Gel Technologies Ltd. (SLGL)
|Growth in perpetuity method:|
|Long-term growth rate|
|Free cash flow (t + 1)||-36,785,126,502.61|
|Present Value of Terminal Value||-238,444,955,472.87|
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Sol-Gel Technologies Ltd.’s cash flows after that period (if we don’t include this, we would have to assume that Sol-Gel Technologies Ltd. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.