Terminal Value

Creative Media & Community Trust Co... (CMCT)

$5.5001

-0.16 (-2.83%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 0.95
Free cash flow (t + 1) 147.51
Terminal Value -14,048.51
Present Value of Terminal Value -13,399.81



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