Terminal Value

Uni-Select Inc. (UNS.TO)


+0.77 (+2.04%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.90
Free cash flow (t + 1) 65.96
Terminal Value 834.99
Present Value of Terminal Value 520.83

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