Terminal Value
Vanguard U.S. Dividend Appreciation... (VGH.TO)
$51.8
-0.25 (-0.48%)
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 Vanguard U.S. Dividend Appreciation Index ETF (CAD-hedged)’s cash flows after that period (if we don’t include this, we would have to assume that Vanguard U.S. Dividend Appreciation Index ETF (CAD-hedged) stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.