Estimating Share Value Using the DCF Model Following are forecasts of Home Depot's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 3, 2019, which the company labels fiscal 2018. Forecast Horizon Period Reported $ millions 2018 2019 2020 2021 2022 Period Sales $108,203 $115,777 $123,882 $132,553 $141,832 $144,669 12,073 12,967 13,875 14,846 15,885 16,203 25,546 27,332 29,245 31,292 33,483 NOPAT NOA 34,152 Required Answer the following requirements assuming a discount rate (WACC) of 7.85%, a terminal period growth rate of 2%, common shares outstanding of 1,105 million, net nonoperating obligations (NNO) of $27,424 million. Terminal a. Estimate the value of a share of Home Depot's common stock using the discounted cash flow (DCF) model as of February 3, 2019 Note: Do not round until your final answer, round your final answer to two decimal places. Stock price per share: $ 0 b. Home Depot stock closed at $190.06 on March 28, 2019, the date the Form 10-K was filed with the SEC. How does your valuation estimate compare with this closing price?

Estimating Share Value Using the DCF Model Required stockprice per share is x Stock proce is appropnactly vilited