Terminal Value

Ur-Energy Inc. (URE.TO)


+0.01 (+0.76%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.34
Free cash flow (t + 1) -1.36
Terminal Value -16.32
Present Value of Terminal Value -9.98

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