Terminal Value

Centrais Elétricas Brasileiras S.A.... (EBR)

$8.55

-0.09 (-1.04%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.38
Free cash flow (t + 1) 36,325.19
Terminal Value 1,526,268.68
Present Value of Terminal Value 1,231,812.28



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