Financial Valuation for Microsoft Essay Example for Free

Financial Valuation for Microsoft EssayUsing a percent of sales method of portent to forecast income statement and balance sheet items that will be used in the valuation. We have devised three different valuation Scenarios, Normal gaucherie, Best Case and Worst Case Scenario.2. The Sales growth varied under each scenario according to certain assumptions and outlooks about the company3. Terminal Value is calculated by using the constant Gordon growth model from the horizon year to infinity and then discounting this horizon assess to the present at the WACC. 4. After discounting FCFF and adding them to the terminal value. The resulting value is divided by number of shares to reach fair price.