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Valuation Using Price-to-NOPAT Multiple The following table provides summary data for Applied Materials Inc. and its...
Valuation Using Price-to-NOPAT Multiple
The following table provides summary data for Applied Materials Inc. and its competitors, KLA Tencor Corporation and Lam Research Corporation.
|
(in millions) |
Applied Materials | KLA Tencor | Lam Research | ||
|---|---|---|---|---|---|
| Company assumed value | - | $9,791 | $11,530 | ||
| Equity assumed value | - | $8,988 | $13,245 | ||
| NOPAT | $1,444 | $440 | $674 | ||
| Net income | $1,377 | $366 | $656 | ||
| Net nonoperating obligations (assets) | $(1,369) | $803 | $(1,715) | ||
| Common shares outstanding | 1,160.0 | 157.9 | 158.5 |
a. Compute the price to NOPAT ratio for both KLA Tencor Corporation and Lam Research Corporation.
Round answers to two decimal places, when applicable.
| Price to NOPAT ratio | |
|---|---|
| KLA Tencor | Answer |
| Lam Research | Answer |
b. Use KLA Tencor Corporation and Lam Research Corporation as comparables, along with the price to NOPAT ratios from part a, and then estimate for Applied Materials its company intrinsic value, its equity intrinsic value, and its equity intrinsic value per share.
-
Round company and equity intrinsic values to the nearest million.
-
Round equity intrinsic value per share to two decimal places.
| KLA Tencor Corporation | |||
|---|---|---|---|
| Company intrinsic value | Answer | million | |
| Equity intrinsic value | Answer | million | |
| Equity intrinsic value per share | Answer | ||
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Valuation Using Price-to-NOPAT Multiple The following table provides summary data for Applied Materials Inc. and its...
Valuation Using Price-to-NOPAT Multiple
The following table provides summary data for Applied Materials
Inc. and its competitors, KLA Tencor Corporation and Lam Research
Corporation.
(in millions)
Applied Materials
KLA Tencor
Lam Research
Company assumed value
-
$9,791
$11,530
Equity assumed value
-
$8,988
$13,245
NOPAT
$1,444
$440
$674
Net income
$1,377
$366
$656
Net nonoperating obligations (assets)
$(1,369)
$803
$(1,715)
Common shares outstanding
1,160.0
157.9
158.5
a. Compute the price to NOPAT ratio for both KLA Tencor
Corporation and Lam...
Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target and...
Valuation Using
Price-to-NOA Multiple and PB Multiple
The following table provides summary data for Target and its
competitors, Kohl's and Wal-Mart.
(in millions)
Target
Kohl's
Wal-Mart
Company assumed value
--
$22,098
$252,306
Equity assumed value
--
$21,470
$213,288
Net operating assets
$26,152
$6,231
$100,591
Book value of equity
$15,633
$5,603
$61,573
Net nonoperating obligations (assets)
$10,519
$628
$39,018
Common shares outstanding
860 shares
321 shares
41 shares
(a) Compute the price
to net operating assets ratio for both Kohl's and...
Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target and...
Valuation Using Price-to-NOA Multiple and PB Multiple
The following table provides summary data for Target and its
competitors, Kohl's and Wal-Mart.
(in millions)
Target
Kohl's
Wal-Mart
Company assumed value
--
$21,598
$242,306
Equity assumed value
--
$20,970
$203,288
Net operating assets
$25,152
$6,231
$100,591
Book value of equity
$15,633
$5,603
$61,573
Net nonoperating obligations (assets)
$9,519
$628
$39,018
Common shares outstanding
860 shares
321 shares
41 shares
(a) Compute the price to net operating assets ratio for both
Kohl's and...
Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target and...
Valuation Using Price-to-NOA Multiple and PB Multiple
The following table provides summary data for Target and its
competitors, Kohl's and Wal-Mart.
(in millions)
Target
Kohl's
Wal-Mart
Company assumed value
--
$23,098
$237,306
Equity assumed value
--
$22,470
$198,288
Net operating assets
$25,952
$6,040
$89,991
Book value of equity
$15,033
$5,603
$61,573
Net nonoperating obligations (assets)
$10,109
$628
$39,018
Common shares outstanding
860 shares
321 shares
41 shares
(a) Compute the price to net operating assets ratio for both
Kohl's and...
Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target and...
Valuation Using Price-to-NOA Multiple and PB Multiple
The following table provides summary data for Target and its
competitors, Kohl's and Wal-Mart.
(in millions)
Target
Kohl's
Wal-Mart
Company assumed value
--
$24,098
$237,306
Equity assumed value
--
$23,470
$198,288
Net operating assets
$24,152
$6,231
$100,591
Book value of equity
$15,633
$5,603
$61,573
Net nonoperating obligations (assets)
$8,519
$628
$39,018
Common shares outstanding
860 shares
321 shares
41 shares
(a) Compute the price to net operating assets ratio for both
Kohl's and...
Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target and...
Valuation Using Price-to-NOA Multiple and PB Multiple
The following table provides summary data for Target and its
competitors, Kohl's and Wal-Mart.
(in millions)
Target
Kohl's
Wal-Mart
Company assumed value
--
$21,598
$242,306
Equity assumed value
--
$20,970
$203,288
Net operating assets
$25,152
$6,231
$100,591
Book value of equity
$15,633
$5,603
$61,573
Net nonoperating obligations (assets)
$9,519
$628
$39,018
Common shares outstanding
860 shares
321 shares
41 shares
(a) Compute the price to net operating assets ratio for both
Kohl's and...
Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target Corp....
Valuation Using Price-to-NOA Multiple and PB Multiple
The following table provides summary data for Target Corp. and
its competitors, Kohl’s Corp. and Walmart Stores Inc.
(in millions)
Target
Kohl's
Wal-Mart
Company assumed value
--
$13,255
$251,159
Equity assumed value
--
$9,254
$209,830
Net operating assets
$21,671
$9,492
$124,940
Book value of equity
$12,957
$5,491
$83,611
Net nonoperating obligations (assets)
$8,714
$4,001
$41,329
Common shares outstanding
640.2 shares
186.0 shares
3,262.0 shares
(a) Compute the price to net operating assets ratio...
Valuation Using Income Statement Multiples The following table provides summary data for Target and its competitors,...
Valuation Using Income Statement Multiples
The following table provides summary data for Target and its
competitors, Kohl's and Wal-Mart.
(in millions)
Target
Kohl's
Wal-Mart
Company assumed value
--
$23,098
$237,306
Equity assumed value
--
$22,470
$198,288
NOPAT
$3,159
$1,152
$13,354
Net income
$2,787
$1,109
$12,178
Net nonoperating obligations (assets)
$10,109
$628
$39,018
Common shares outstanding
860 shares
321 shares
41 shares
(a) Compute the price to NOPAT ratio for both Kohl's and
Wal-Mart.
Round your answers to two decimal places....
The following table provides summary information for Tom, Inc., and its competitors Andy Corp. and Patrick...
The following table provides summary information for Tom, Inc.,
and its competitors Andy Corp. and Patrick Enterprises. Use the
information to compute the Price to NOPAT ratio for Andy and
Patrick. In addition, using the Andy and Patrick as comparables,
compute Tom’s company intrinsic value, equity intrinsic value, and
equity intrinsic value per share.
Next, use the information to compute the Price to Net Income ratio
for Andy Corp. and Patrick Enterprises. In addition, using Andy
Corp. and Patrick Enterprises...
The following table provides summary information for Tom, Inc., and its competitors Andy Corp. and Patrick...
The following table provides summary information for Tom, Inc.,
and its competitors Andy Corp. and Patrick Enterprises. Use the
information to compute the Price to NOPAT ratio for Andy and
Patrick. In addition, using the Andy and Patrick as comparables,
compute Tom’s company intrinsic value, equity intrinsic value, and
equity intrinsic value per share.
Next, use the information to compute the Price to Net Income ratio
for Andy Corp. and Patrick Enterprises. In addition, using Andy
Corp. and Patrick Enterprises...
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