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Major Indexes

Terminal Value

Seaboard Corporation

Seaboard Corporation (SEB)

$2922
20.98 (+0.72%)

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.53
Free cash flow (t + 1) 378.06
Terminal Value 14,943.24
Present Value of Terminal Value 10,891.43



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.