Terminal Value

The Gabelli Healthcare & Wellness T... (GRX)

$12.27

+0.30 (+2.51%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.88
Free cash flow (t + 1) -
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 The Gabelli Healthcare & Wellness Trust’s cash flows after that period (if we don’t include this, we would have to assume that The Gabelli Healthcare & Wellness Trust stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.