Terminal Value

GK Software SE (GKS.DE)

144.4 €

-2.20 (-1.50%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.82
Free cash flow (t + 1) 16.03
Terminal Value 163.21
Present Value of Terminal Value 93.36

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