Terminal Value
BlackRock Multi-Sector Income Trust (BIT)
$14.39
-0.05 (-0.35%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 2.90 |
| Free cash flow (t + 1) | 192,010.62 |
| Terminal Value | 21,334,513.38 |
| Present Value of Terminal Value | 18,492,936.04 |
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of BlackRock Multi-Sector Income Trust’s cash flows after that period (if we don’t include this, we would have to assume that BlackRock Multi-Sector Income Trust stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.