Terminal Value

Canadian Natural Resources Limited (CNQ.TO)

$77.73

+0.70 (+0.91%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.94
Free cash flow (t + 1) 14,442.27
Terminal Value 145,294.43
Present Value of Terminal Value 82,665.15



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