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Terminal Value

Mettler-Toledo International Inc.

Mettler-Toledo International Inc. (MTD)

Healthcare

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.65
Free cash flow (t + 1) 690.07
Terminal Value 7,977.64
Present Value of Terminal Value 4,397.63



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.