Terminal Value

Companhia Siderúrgica Nacional (SID)


-0.09 (-3.14%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.16
Free cash flow (t + 1) 20,587.27
Terminal Value 651,495.86
Present Value of Terminal Value 506,592.52

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