Terminal Value

T. Rowe Price Large-Cap Growth Fund... (TRLGX)

$48.85

-0.70 (-1.41%)
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 T. Rowe Price Large-Cap Growth Fund I Class’s cash flows after that period (if we don’t include this, we would have to assume that T. Rowe Price Large-Cap Growth Fund I Class stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.