Terminal Value
Klöckner & Co SE (KCO.DE)
9.75 €
+0.07 (+0.72%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.80 |
| Free cash flow (t + 1) | 282.63 |
| Terminal Value | 4,156.32 |
| Present Value of Terminal Value | 2,726.24 |
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Klöckner & Co SE’s cash flows after that period (if we don’t include this, we would have to assume that Klöckner & Co SE stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.