Terminal Value

ANGI Homeservices Inc.

ANGI Homeservices Inc. (ANGI)


Growth in perpetuity method:
Long-term growth rate
WACC (%) 14.62
Free cash flow (t + 1) 4.44
Terminal Value 41.77
Present Value of Terminal Value 21.11

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