Terminal Value

CS Communication & Systemes SA (SX.PA)

11.2 €

0.00 (0.00%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.28
Free cash flow (t + 1) 11.51
Terminal Value 217.91
Present Value of Terminal Value 153.35

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