Terminal Value
FlexShares iBoxx 3-Year Target Dura... (TDTT)
$23.79
-0.04 (-0.17%)
| 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 FlexShares iBoxx 3-Year Target Duration TIPS Index Fund’s cash flows after that period (if we don’t include this, we would have to assume that FlexShares iBoxx 3-Year Target Duration TIPS Index Fund stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.