Terminal Value

Banco Bradesco S.A. (BBDO)


-0.01 (-0.35%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 30.50
Free cash flow (t + 1) 211,855.56
Terminal Value 743,352.84
Present Value of Terminal Value 196,400.43

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