Terminal Value

Hotelim Société Anonyme (MLHOT.PA)

28.8 €

0.00 (0.00%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.66
Free cash flow (t + 1) 4.51
Terminal Value 683.51
Present Value of Terminal Value 599.43

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