Terminal Value

BlackRock Municipal Income Trust II (BLE)

$10.94

+0.01 (+0.09%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.71
Free cash flow (t + 1) 2,016.57
Terminal Value 54,354.90
Present Value of Terminal Value 41,177.35



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