Terminal Value

RiverNorth/DoubleLine Strategic Opp... (OPP)

$9.66

+0.06 (+0.63%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.70
Free cash flow (t + 1) -16.17
Terminal Value -951.36
Present Value of Terminal Value -793.32



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