Terminal Value

Omax Autos Limited (OMAXAUTO.NS)

51.8 ₹

-1.50 (-1.50%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.88
Free cash flow (t + 1) 92.25
Terminal Value 847.88
Present Value of Terminal Value 462.65

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