Terminal Value

SmartCentres Real Estate Investment... (SRU-UN.TO)

$27.12

+0.04 (+0.15%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.78
Free cash flow (t + 1) 477.96
Terminal Value 12,644.37
Present Value of Terminal Value 9,547.27



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