Terminal Value

Zion Oil & Gas Inc

Zion Oil & Gas Inc (ZN)

0.0538 (+12.11%)

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.86
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 Zion Oil & Gas Inc’s cash flows after that period (if we don’t include this, we would have to assume that Zion Oil & Gas Inc stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.