Terminal Value

Bharat Electronics Limited (BEL.NS)

94 ₹

+0.90 (+0.97%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.73
Free cash flow (t + 1) 27,607.37
Terminal Value 1,011,258.85
Present Value of Terminal Value 802,614.16

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