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.