Terminal Value

Calamos Dynamic Convertible and Inc... (CCD)


-0.46 (-1.97%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.43
Free cash flow (t + 1) 13,197.82
Terminal Value 297,919.26
Present Value of Terminal Value 218,161.58

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