Terminal Value

Studio City International Holdings ... (MSC)

$ 9.3
0.41 (+4.20%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 1.61
Free cash flow (t + 1) -26.22
Terminal Value 1,097.03
Present Value of Terminal Value 1,012.83



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