Terminal Value

Meta Platforms, Inc. (META)


0.00 (0.00%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.05
Free cash flow (t + 1) 46,916.63
Terminal Value 665,484.09
Present Value of Terminal Value 431,528.35

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