Terminal Value

Panama Petrochem Limited (PANAMAPET.NS)

316.8 ₹

-8.45 (-2.60%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.80
Free cash flow (t + 1) 2,728.89
Terminal Value 27,845.84
Present Value of Terminal Value 15,942.31



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