Terminal Value

Aptiv PLC (APTV)

$104.35

+2.60 (+2.56%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.90
Free cash flow (t + 1) 1,768.96
Terminal Value 19,875.97
Present Value of Terminal Value 11,848.70



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