Terminal Value

Logitech International S.A. (LOGI)


-3.02 (-6.42%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.68
Free cash flow (t + 1) 1,818.95
Terminal Value 32,023.82
Present Value of Terminal Value 22,120.65

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