Terminal Value

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