Terminal Value

PIMCO Global StocksPLUS & Income Fu... (PGP)

$6.56

+0.11 (+1.71%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.98
Free cash flow (t + 1) -622.43
Terminal Value -20,886.92
Present Value of Terminal Value -16,381.04



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