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.