Terminal Value

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

0.792 €

-0.01 (-1.74%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.21
Free cash flow (t + 1) -19.17
Terminal Value -367.96
Present Value of Terminal Value -259.79

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.