Terminal Value

Sporting Clube de Portugal - Futebo... (SCP.LS)

0.81 €

+0.00 (+0.25%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.63
Free cash flow (t + 1) -11.58
Terminal Value -250.08
Present Value of Terminal Value -181.42

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