Terminal Value

FTS International Inc

FTS International Inc (FTSI)

-0.46 (-2.24%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.43
Free cash flow (t + 1) 4.97
Terminal Value 204.58
Present Value of Terminal Value 149.81

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