Terminal Value

USU Software AG (OSP2.DE)

21 €

-0.10 (-0.47%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.71
Free cash flow (t + 1) 12.78
Terminal Value 190.50
Present Value of Terminal Value 125.47

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