Terminal Value

STORE Capital Corporation (STOR)


0.00 (0.00%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.54
Free cash flow (t + 1) 1,383.29
Terminal Value 89,824.30
Present Value of Terminal Value 75,483.67

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