Terminal Value

Cboe Global Markets, Inc. (CBOE)


+1.74 (+1.35%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.31
Free cash flow (t + 1) 1,131.01
Terminal Value 34,169.36
Present Value of Terminal Value 26,380.85

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