Terminal Value

AllianceBernstein National Municipa... (AFB)

$12.25

-0.12 (-0.97%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.56
Free cash flow (t + 1) 272.50
Terminal Value 10,644.71
Present Value of Terminal Value 8,517.38



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