Terminal Value

Coca-Cola FEMSA, S.A.B. de C.V. (KOF)


-0.14 (-0.16%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.15
Free cash flow (t + 1) 24,040.84
Terminal Value 579,297.32
Present Value of Terminal Value 429,834.76

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