Key Insights The projected fair value for Lee Swee Kiat Group Berhad is RM0.53 based on 2 Stage Free Cash Flow ...

The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the ...

Key Insights The projected fair value for SGH is AU$62.81 based on 2 Stage Free Cash Flow to Equity Current share ...

The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the ...

Present Value of 10-year Cash Flow (PVCF) = US$541m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period.

Present Value of 10-year Cash Flow (PVCF) = US$8.9b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period.

Furthermore, you almost never see a terminal value calculation, where the analyst assumes a negative growth rate in perpetuity.

The NBN Strategic Review addresses terminal-value calculations on just one page (p107), explaining that its internal rate of return (IRR) calculation of 5.3 percent is based on a terminal value of ...