Terminal Value

Associated Banc-Corp (ASB)

$20.1

-0.29 (-1.42%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.61
Free cash flow (t + 1) 445
Terminal Value 9,652.91
Present Value of Terminal Value 7,009.20



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