Terminal Value

Ardagh Group S.A. (ARD)


+0.63 (+2.61%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.93
Free cash flow (t + 1) 9,153.74
Terminal Value 185,674.16
Present Value of Terminal Value 132,816.99

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