Terminal Value

Inspired Entertainment, Inc. (INSE)


+0.03 (+0.19%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.21
Free cash flow (t + 1) 57.74
Terminal Value 703.29
Present Value of Terminal Value 432.55

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