Terminal Value

BlackRock Utilities, Infrastructure... (BUI)

$22.95

-0.11 (-0.48%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.71
Free cash flow (t + 1) -38.68
Terminal Value -2,261.85
Present Value of Terminal Value -1,885.21



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