Terminal Value

Citigroup Inc. (C-PJ)

$25.65

-0.06 (-0.23%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.31
Free cash flow (t + 1) 22,449.95
Terminal Value 678,246.32
Present Value of Terminal Value 523,647.92



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