Terminal Value

Nuveen New York AMT-Free Quality Mu... (NRK)

$11.44

-0.08 (-0.69%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.94
Free cash flow (t + 1) -1.44
Terminal Value -74.41
Present Value of Terminal Value -61.33



Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of Nuveen New York AMT-Free Quality Municipal Income Fund’s cash flows after that period (if we don’t include this, we would have to assume that Nuveen New York AMT-Free 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.