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What is the Present Value of Terminal for the Nintendo Company? My current answer is negative but I believe it is supposed to be positive.
What is the Present Value of Terminal for the Nintendo Company? My current answer is negative but I believe it is supposed to be positive.
This is the formula, but because my WACC is less then the terminal percent of 2% I keep getting a negative value, please help I have been at this for hours with no results.
Present value of terminal FCFF (FCFFT / (rw - g) / (1+rw)t] |
These are my current calculations:
=8245/(0.0127-0.02)/(1+0.0127)^4
WACC 1.27% Growth Rate Sales NOPM NOAT NOA NOPAT Increase in NOA Free Cash Flow to Firm Discount Factor PV of Horizon Sum of Horizon PV of Terminal Total Firm Value Less NNO Less NCI Firm Equity Value Shares Outstanding Stock Value Per Share Discounted Cash Flow Model ($ millions) Reported 2021 $16,534 31.60% 1.30 $12,718 $5,225 $19,944 -$1,040,250 2022 12.90% $18,667 Horizon 2023 2024 $14,359 $16,211 $5,899 $6,660 2025 12.90% 12.90% 12.90% 2% $21,075 $23,794 $26,863 $27,400 $1,641 $1,852 $4,258 $4,807 $5,427 0.98746 0.97508 0.96285 $4,205 Terminal $18,303 $20,664 $21,077 $7,519 $8,489 $8,658 $2,091 $2,361 $6,128 0.95077 $4,688 $5,226 $5,826 $413 $8,245Step by Step Solution
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