Terminal Value

Vranken-Pommery Monopole Société An... (VRAP.PA)

17.75 €

+0.15 (+0.85%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.00
Free cash flow (t + 1) 14.58
Terminal Value 485.92
Present Value of Terminal Value 380.73

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