Terminal Value

Smartphoto Group NV (SMAR.BR)

32.9 €

-0.10 (-0.30%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.99
Free cash flow (t + 1) 13.23
Terminal Value 265.22
Present Value of Terminal Value 189.19

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