Coca-Cola FEMSA, S.A.B. de C.V. (KOF)
|Growth in perpetuity method:|
|Long-term growth rate|
|Free cash flow (t + 1)||24,040.84|
|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.