Terminal Value

Crawford & Company (CRD-B)


-0.19 (-2.72%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.70
Free cash flow (t + 1) 42.27
Terminal Value 2,486.46
Present Value of Terminal Value 2,073.42

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