Terminal Value

Clough Global Opportunities Fund (GLO)


+0.03 (+0.66%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.37
Free cash flow (t + 1) 3.89
Terminal Value 115.56
Present Value of Terminal Value 88.97

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