Terminal Value

Organon & Co. (OGN)

$29.57

-0.37 (-1.24%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.97
Free cash flow (t + 1) 732.63
Terminal Value 75,529.35
Present Value of Terminal Value 65,247.24



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