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.