Terminal Value

Huntington Bancshares Incorporated (HBANN)

$25.09

-0.02 (-0.08%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.29
Free cash flow (t + 1) 2,602.49
Terminal Value 60,664.10
Present Value of Terminal Value 44,716.70



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