Terminal Value

Axalta Coating Systems Ltd. (AXTA)


+0.24 (+0.82%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.69
Free cash flow (t + 1) 647.48
Terminal Value 11,379.29
Present Value of Terminal Value 7,856.67

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