Terminal Value

Crown Castle Inc. (CCI)


+1.06 (+0.81%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.28
Free cash flow (t + 1) 2,670.74
Terminal Value 81,425.02
Present Value of Terminal Value 62,954.75

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