Terminal Value

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


-0.10 (-0.93%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.16
Free cash flow (t + 1) 2,072,365,150.52
Terminal Value 95,942,831,042.61
Present Value of Terminal Value 78,254,203,102.50

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.