Terminal Value

Hamilton Beach Brands Holding Compa... (HBB)

$11.45

-0.27 (-2.30%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.29
Free cash flow (t + 1) 20.55
Terminal Value 479.02
Present Value of Terminal Value 353.10



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