Terminal Value

PQ Group Holdings Inc. (PQG)


+0.09 (+0.58%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.49
Free cash flow (t + 1) 58.29
Terminal Value 1,298.32
Present Value of Terminal Value 948.07

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