Terminal Value

Western Asset Inflation-Linked Oppo... (WIW)

$9.51

+0.01 (+0.11%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.85
Free cash flow (t + 1) -1.17
Terminal Value -63.09
Present Value of Terminal Value -52.23



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