Find the DCM for FedEx (Discounted Cash Flow model)

Free Cash Flows to the Firm (FCFF):
FCFF = NOPAT Increase in NOA
DCF model - steps
1. Forecast and discount free cash flows to the firm (FCFF) for the horizon period.
Discount Factor ([1/(1+rw)t]
rw =	WACC
t =	periods
2. Forecast and discount FCFF for the post-horizon period, called the terminal period.
Present value of terminal FCFF (FCFFT / (rw - g) / (1+rw)t]
FCFF =	Free cash flows to the firm
rw =	WACC
t =	periods
g =	terminal growth rate
3. Sum the present values of the horizon and terminal periods to yield firm value.
4. Subtract the value of the firms debt (NNO) from the value of the firm.
5. Divide this amount by the number of shares outstanding to yield the estimated per share stock price
note:	if the calculated per share price is higher than the current trading stock price, it means it is a good investment!