Terminal Value

Honeywell Automation India Limited (HONAUT.NS)

40261.55 ₹

-25.60 (-0.06%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.50
Free cash flow (t + 1) 4,575.20
Terminal Value 130,719.88
Present Value of Terminal Value 100,018.27

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