Terminal Value

Jerónimo Martins, SGPS, S.A. (JMT.LS)

23.92 €

-0.16 (-0.66%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.39
Free cash flow (t + 1) 826.10
Terminal Value 24,368.63
Present Value of Terminal Value 18,742.78

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