Terminal Value

Oxford Industries, Inc. (OXM)


-0.67 (-0.57%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.93
Free cash flow (t + 1) 53.06
Terminal Value 765.71
Present Value of Terminal Value 499.26

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