Terminal Value

NortonLifeLock Inc. (NLOK)


-0.50 (-2.26%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.09
Free cash flow (t + 1) 4,289.72
Terminal Value 84,277.44
Present Value of Terminal Value 59,836.58

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