Terminal Value

NVIDIA Corp

NVIDIA Corp (NVDA)

$545.82
5.91 (+1.09%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 14.59
Free cash flow (t + 1) 4,371.77
Terminal Value 41,282.03
Present Value of Terminal Value 20,894.28



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