Terminal Value

Ecovyst Inc. (ECVT)


+0.37 (+4.38%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.41
Free cash flow (t + 1) 20.85
Terminal Value 865.28
Present Value of Terminal Value 697.34

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