Centrais Elétricas Brasileiras S.A.... (EBR)
|Growth in perpetuity method:|
|Long-term growth rate|
|Free cash flow (t + 1)||36,325.19|
|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.