Terminal Value

Sculptor Capital Management, Inc. (SCU)


-0.41 (-4.15%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.08
Free cash flow (t + 1) 40.23
Terminal Value 986.01
Present Value of Terminal Value 734.03

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