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.