Terminal Value

Mack-Cali Realty Corporation (CLI)

$18.35

-0.04 (-0.22%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.12
Free cash flow (t + 1) -100.82
Terminal Value -4,755.60
Present Value of Terminal Value -3,886.28



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