Terminal Value
Sol-Gel Technologies Ltd. (SLGL)
$3.88
-0.23 (-5.60%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 11.11 |
| Free cash flow (t + 1) | -36,785,126,502.61 |
| Terminal Value | -403,788,435,813.54 |
| 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.