Terminal Value

Delaware Enhanced Global Dividend a... (DEX)

$8.1

-0.07 (-0.86%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.02
Free cash flow (t + 1) 3.72
Terminal Value 92.62
Present Value of Terminal Value 69.14



Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Delaware Enhanced Global Dividend and Income Fund’s cash flows after that period (if we don’t include this, we would have to assume that Delaware Enhanced Global Dividend 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.