Terminal Value
T-Mobile US, Inc. (TMUS)
$146.98
+0.25 (+0.17%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.90 |
| Free cash flow (t + 1) | 13,738.70 |
| Terminal Value | 473,748.39 |
| Present Value of Terminal Value | 372,966.91 |
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of T-Mobile US, Inc.’s cash flows after that period (if we don’t include this, we would have to assume that T-Mobile US, Inc. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.