Terminal Value

Adtalem Global Education Inc. (ATGE)


-0.07 (-0.19%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) -20.59
Free cash flow (t + 1) -182.02
Terminal Value 805.75
Present Value of Terminal Value 2,551.68

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