Terminal Value

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