Terminal Value

Western Asset Global High Income Fu... (EHI)

$7.72

0.00 (0.00%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 1.16
Free cash flow (t + 1) -3,136,944,392.24
Terminal Value 373,445,760,980.67
Present Value of Terminal Value 352,519,731,545.53



Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Western Asset Global High Income Fund Inc.’s cash flows after that period (if we don’t include this, we would have to assume that Western Asset Global High Income Fund Inc. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.