Terminal Value

CaixaBank, S.A. (CABK.MC)

3.419 €

-0.14 (-4.01%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.28
Free cash flow (t + 1) 6,410.28
Terminal Value 195,435.28
Present Value of Terminal Value 151,103.18

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