Loading...

Terminal Value

Chipotle Mexican Grill Inc.

Chipotle Mexican Grill Inc. (CMG)

Consumer Cyclical

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.76
Free cash flow (t + 1) 868.64
Terminal Value 23,102.06
Present Value of Terminal Value 15,898.74



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