Terminal Value

Lexibook - Linguistic Electronic Sy... (ALLEX.PA)

2.6 €

-0.08 (-2.99%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.27
Free cash flow (t + 1) 5.65
Terminal Value 68.37
Present Value of Terminal Value 41.94



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