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Terminal Value

Booking Holdings Inc.

Booking Holdings Inc. (BKNG)

Consumer Cyclical

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.13
Free cash flow (t + 1) 9,995.03
Terminal Value 163,051.05
Present Value of Terminal Value 100,645.74



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