Terminal Value

Century Casinos, Inc. (CNTY)


+0.06 (+0.91%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.35
Free cash flow (t + 1) 11.49
Terminal Value 156.36
Present Value of Terminal Value 100.01

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