Terminal Value
G. Willi-Food International Ltd. (WILC)
$14.5
+0.17 (+1.19%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 14.76 |
| Free cash flow (t + 1) | 59.34 |
| Terminal Value | 465.08 |
| Present Value of Terminal Value | 233.66 |
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of G. Willi-Food International Ltd.’s cash flows after that period (if we don’t include this, we would have to assume that G. Willi-Food International Ltd. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.