Terminal Value

Taseko Mines Limited (TKO.TO)


+0.10 (+5.85%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.36
Free cash flow (t + 1) 28.42
Terminal Value 446.92
Present Value of Terminal Value 299.14

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