Terminal Value
Nuveen Emerging Markets Debt 2022 T... (JEMD)
$6.63
-0.00 (-0.05%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 2.97 |
| Free cash flow (t + 1) | -0.83 |
| Terminal Value | -86.04 |
| Present Value of Terminal Value | -74.33 |
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Nuveen Emerging Markets Debt 2022 Target Term Fund’s cash flows after that period (if we don’t include this, we would have to assume that Nuveen Emerging Markets Debt 2022 Target Term Fund stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.