Terminal Value

Blackstone/GSO Strategic Credit Fun... (BGB)


+0.05 (+0.47%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.31
Free cash flow (t + 1) 2,072,365,150.52
Terminal Value 89,712,777,078.80
Present Value of Terminal Value 72,648,152,370.94

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