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. . . . . . . . . . . . . . . . . . . . . . . . . . — $9,679 $11,418 Equity assumed value . . . . . . . . . . . . . . . . . . . . . . . . . . . . — $8,876 $13,133 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 shares 157.9 shares 158.5 shares Required

a. Compute the price to NOPAT ratio for both KLA Tencor Corporation and Lam Research Corporation.

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.