Terminal Value

Virtus KAR Small-Cap Value Fund (VQSRX)


-0.18 (-0.81%)
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 Virtus KAR Small-Cap Value Fund’s cash flows after that period (if we don’t include this, we would have to assume that Virtus KAR Small-Cap Value Fund stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.