Terminal Value

Perusahaan Perseroan (Persero) PT T... (TLK)

$28.85

-0.70 (-2.37%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.58
Free cash flow (t + 1) 11,968,563.69
Terminal Value 757,504,030.71
Present Value of Terminal Value 635,338,853.04



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