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.