Terminal Value
Centrais Elétricas Brasileiras S.A.... (EBR-B)
$8.1
+0.09 (+1.12%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.37 |
| Free cash flow (t + 1) | 8,059.36 |
| Terminal Value | 150,081.24 |
| Present Value of Terminal Value | 105,174.79 |
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.