Terminal Value

Deoleo, S.A. (OLE.MC)

0.228 €

-0.01 (-2.15%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.74
Free cash flow (t + 1) 11.46
Terminal Value 170.08
Present Value of Terminal Value 111.87

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