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Terminal Value

Seaboard Corporation

Seaboard Corporation (SEB)

Industrials

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.30
Free cash flow (t + 1) 520.62
Terminal Value 15,776.37
Present Value of Terminal Value 11,091.96



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