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Major Indexes

Terminal Value

Ampco-Pittsburgh Corporation

Ampco-Pittsburgh Corporation (AP)

$3.16
0.07 (+2.27%)

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.19
Free cash flow (t + 1) -26.48
Terminal Value -323.33
Present Value of Terminal Value -181.92



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