Terminal Value

Novo Nordisk A/S (NVO)


+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.