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AAPL 154.28 -0.6 (-0.39%)MSFT 105.32 -0.06 (-0.06%)FB 130.65 -2.52 (-1.89%)ZNGA 3.95 +0.07 (+1.68%)NVDA 133.37 -0.29 (-0.22%)WBA 68.22 +0.16 (+0.24%)GOOG 1029.8 -7.78 (-0.75%)PIH 4.14 +0.25 (+6.43%)

Terminal Value GE Quote General Ele

Growth in perpetuity method:
Long term growth rate
WACC (%) 7.3
Free cash flow (t+1) 11,256.10
Terminal Value 341,094.05
Present Value of Terminal Value 239,814.55
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of ACME Corp.’s cash flows after that period (if we don’t include this, we would have to assume that ACME Corp. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.