Mettler-Toledo International Inc. (MTD)
|Growth in perpetuity method:|
|Long-term growth rate|
|Free cash flow (t + 1)||651.46|
|Present Value of Terminal Value||4,185.04|
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Mettler-Toledo International Inc.’s cash flows after that period (if we don’t include this, we would have to assume that Mettler-Toledo International Inc. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.