Terminal Value

Coca-Cola Bottlers Japan Holdings I... (CCOJY)

$5.2055

0.00 (0.00%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 0.10
Free cash flow (t + 1) -6,886.74
Terminal Value 362,459.84
Present Value of Terminal Value 360,652.96



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