Terminal Value

Danaher Corporation (DHR)


-0.20 (-0.08%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.66
Free cash flow (t + 1) 12,499.53
Terminal Value 268,230.33
Present Value of Terminal Value 194,312.16

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