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.