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.