Terminal Value

SRH Total Return Fund, Inc. (BIF)

$14.75

-0.08 (-%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.85
Free cash flow (t + 1) 20,365,564,579.06
Terminal Value 419,908,548,021.84
Present Value of Terminal Value 301,496,366,859.55



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