Terminal Value
SPDR S&P 600 Small Cap ETF (SLY)
$81.63
+0.95 (+1.18%)
| 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 SPDR S&P 600 Small Cap ETF’s cash flows after that period (if we don’t include this, we would have to assume that SPDR S&P 600 Small Cap ETF stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.