Major Indexes

Terminal Value

Atrion Corporation

Atrion Corporation (ATRI)

3.16 (+0.49%)

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.55
Free cash flow (t + 1) 31,351.27
Terminal Value -6,966,947.95
Present Value of Terminal Value -5,851,834.70

Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Atrion Corporation’s cash flows after that period (if we don’t include this, we would have to assume that Atrion Corporation stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.