A company has EBIT of $5.46 per share and a tax rate of 22.4%. Their ROIC is 23.7% and an analyst is assuming the long-run GDP growth rate of 2.46% will apply to this firm as their long-run growth rate. Their required return is 12.7% and their WACC is 8%. 

What is their estimated intrinsic value using the ROIC valuation method?

Answer rating: 100% (QA)

First we need to calculate the invested capital which is EBIT divided by the ROIC Inv... View the full answer