Terminal Value

iShares MSCI Multifactor EAFE Index... (XFF.TO)

$24.36

+1.34 (+5.82%)
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 iShares MSCI Multifactor EAFE Index ETF (CAD-Hedged)’s cash flows after that period (if we don’t include this, we would have to assume that iShares MSCI Multifactor EAFE 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.