Terminal Value

Kimco Realty Corporation (KIM-PM)

$21.47

+0.34 (+1.61%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.79
Free cash flow (t + 1) 2,304.12
Terminal Value 48,102.81
Present Value of Terminal Value 34,635.18



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