Terminal Value
DTF Tax-Free Income 2028 Term Fund ... (DTF)
$11.14
-0.09 (-0.80%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | - |
| Free cash flow (t + 1) | -110.11 |
| Terminal Value | - |
| Present Value of Terminal Value | - |
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of DTF Tax-Free Income 2028 Term Fund Inc.’s cash flows after that period (if we don’t include this, we would have to assume that DTF Tax-Free Income 2028 Term Fund Inc. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.