Terminal Value

Borr Drilling Limited (BORR)

$4.04

+0.16 (+4.12%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.87
Free cash flow (t + 1) -6,602,802,256,576,109,568
Terminal Value -112,483,854,456,151,785,472
Present Value of Terminal Value -77,017,035,173,457,018,880



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