Terminal Value
Uni-Select Inc. (UNS.TO)
$38.46
+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.