Terminal Value

iShares S&P/TSX Capped Utilities In... (XUT.TO)

$30.17

+0.40 (+1.34%)
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 S&P/TSX Capped Utilities Index ETF’s cash flows after that period (if we don’t include this, we would have to assume that iShares S&P/TSX Capped Utilities Index ETF stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.