Terminal Value
Ur-Energy Inc. (URE.TO)
$1.33
+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.