Terminal Value
SS&C Technologies Holdings, Inc. (SSNC)
$58.34
+0.42 (+0.73%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.84 |
| Free cash flow (t + 1) | 4,551.08 |
| Terminal Value | 77,929.47 |
| Present Value of Terminal Value | 53,432.11 |
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of SS&C Technologies Holdings, Inc.’s cash flows after that period (if we don’t include this, we would have to assume that SS&C Technologies Holdings, Inc. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.