Financial Forecasting and Corporate valuation of Federal Express Corporation
Keywords:
shareholders value maximization, Financial Analysis, Market Value Added, Economic Value addedAbstract
There are several ways to value a company, the most famous and classical approaches of valuation are Discounted Cash Flow and EPS build-up projections. In this report more recent model is used, that was constructed by Stern Stewart consulting; which is named Economic Model or Economic Value Added model (EVA and MVA). In this research paper we have intended to a corporate valuation on FedEx Corporation. The objective is to assess the expected impact of financing decisions responding to different estimated market scenarios to see the impact on earnings and shareholder’s value. It is found that there was a significant increase in the confidence level of the shareholders and FedEX has demonstrated its value by maximizing the shareholders’ value.
