Construcciones y Auxiliar de Ferroc... (CAF.MC)
|Growth in perpetuity method:|
|Long-term growth rate|
|Free cash flow (t + 1)||409.80|
|Present Value of Terminal Value||7,841.50|
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Construcciones y Auxiliar de Ferrocarriles, S.A.’s cash flows after that period (if we don’t include this, we would have to assume that Construcciones y Auxiliar de Ferrocarriles, S.A. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.