Estimating Share Value Using the ROPI Model Following are forecasts of Home Depots 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					Terminal
$ millions	2018	2019	2020	2021	2022	Period
Sales	$98,465	$105,357	$112,733	$120,623	$129,067	$131,649
NOPAT	10,986	11,800	12,626	13,510	14,455	14,745
NOA	23,247	24,872	26,613	28,476	30,470	31,078

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 $24,956 million. a. Estimate the value of a share of Home Depot common stock using the residual operating income (ROPI) 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: $Answer b. Home Depot stock closed at $172.95 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? AnswerStock price is overvalued

Stock price is undervalued

Stock price is appropriately valued