Terminal Value

Comcast Corporation (CMCSA)


-0.77 (-1.95%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.38
Free cash flow (t + 1) 23,619.93
Terminal Value 539,267.72
Present Value of Terminal Value 395,826.16

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