Terminal Value

Nuveen Georgia Quality Municipal In... (NKG)

$10.1

-0.10 (-0.98%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.99
Free cash flow (t + 1) 26,457.26
Terminal Value 663,089.31
Present Value of Terminal Value 495,732.70



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