Terminal Value

G. Willi-Food International Ltd. (WILC)


+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.