Terminal Value
Coca-Cola FEMSA, S.A.B. de C.V. (KOF)
$85.1
-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.