Harley-Davidson, Inc. (HAR.DE)
|Growth in perpetuity method:|
|Long-term growth rate|
|Free cash flow (t + 1)||371.37|
|Present Value of Terminal Value||5,032.55|
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Harley-Davidson, Inc.’s cash flows after that period (if we don’t include this, we would have to assume that Harley-Davidson, Inc. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.