Terminal Value

Emakina Group SA (ALEMK.BR)

29 €

0.00 (0.00%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.17
Free cash flow (t + 1) 2.37
Terminal Value 29.04
Present Value of Terminal Value 17.89

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