Terminal Value
Harley-Davidson, Inc. (HAR.DE)
47.225 €
+0.38 (+0.81%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.21 |
| Free cash flow (t + 1) | 371.37 |
| Terminal Value | 7,127.95 |
| 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.