Terminal Value

Innovative-RFK S.p.A. (MLIRF.PA)

1.53 €

+0.03 (+2.00%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.24
Free cash flow (t + 1) 0.62
Terminal Value 27.53
Present Value of Terminal Value 22.37

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