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Terminal Value

SPDR S&P Semiconductor

SPDR S&P Semiconductor (XSD)


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 SPDR S&P Semiconductor’s cash flows after that period (if we don’t include this, we would have to assume that SPDR S&P Semiconductor stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.