Terminal Value

Rothschild & Co SCA (ROTH.PA)

33.35 €

+0.35 (+1.06%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.57
Free cash flow (t + 1) 757.45
Terminal Value 16,574.32
Present Value of Terminal Value 12,057.60

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