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.