Terminal Value

Deutsche Bank Aktiengesellschaft (DB)

$11.25

+0.06 (+0.54%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.34
Free cash flow (t + 1) 5,113.02
Terminal Value 381,568.75
Present Value of Terminal Value 323,765.46



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