Terminal Value
Novo Nordisk A/S (NVO)
$158.56
+0.47 (+0.30%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.74 |
| Free cash flow (t + 1) | 75,059.22 |
| Terminal Value | 2,739,387.47 |
| Present Value of Terminal Value | 2,173,154.57 |
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Novo Nordisk A/S’s cash flows after that period (if we don’t include this, we would have to assume that Novo Nordisk A/S stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.