Question: please help solve for the balances in the problem set Valuation Using Price-to-NOA Multiple The following table provides summary data for Cerner Corporation and its
please help solve for the balances in the problem set




Valuation Using Price-to-NOA Multiple The following table provides summary data for Cerner Corporation and its competitors, Eclipsys Corporation and McKesson Corporation. (in millions) Center Eclipsys McKesson Company assumed value ' --' $1,120 $17,519 Equity assumed value - $1,120 l $15,570 Net operating assets 1 $1,328 1 $258 l $8,454 Book value of equity $1,132 $258l $6,505 Net nonoperating obligations (assets) $192 $0 l $1,949 Common shares outstanding 80.4 shares 54.0 shares l 288.8 shares (a) Compute the price to net operating assets ratio for both Eclipsys and McKesson. (Round your answers to two decimal places.) Eclipsys 0 McKesson O (b) Use Eclipsys and McKesson as comparables, along with the rounded price to NOA ratios from part (a), and then estimate for Cerner its company intrinsic value, its equity intrinsic value, and its equity intrinsic value per share. (Round the intrinsic value and equity intrinsic value to the nearest million and the value per share to the nearest cent.) Average of the two rounded ratios in (a) above 0 (Round to two decimal places.) Using the rounded average calculation above, calculate the following: Intrinsic value $ 0 million Equityintrinsicvalue$ 0 million Equity intrinsic value per share $ 0 Valuation Using the PB Multiple The following table provides summary data for Cerner Corporation and its competitors, Eclipsys Corporation and Mckesson Corporation. in millions) Center Eclipsys Mckesson Company assumed value $1,110 $17, 1 19 Equity assumed value $1,110 $15,270 Net operating assets $1,328 $208 $8,354 Book value of equity $1,132 $208 $6,505 Net nonoperating obligations (assets) $196 $0 $1,849 Common shares outstanding 80.4 shares 54.0 shares 288.8 shares (a)Compute the PB ratio for both Eclipsys and Mckesson. (Round your answers to two decimal places.) Eclipsys 0 Mckesson 0 (b) Use Eclipsys and Mckesson as comparables, along with the rounded PB ratios from part (a), and then estimate for Cerner its equity intrinsic value and its equity intrinsic value per share. (Round the equity intrinsic value to the nearest million and the value per share to the nearest cent.) Average of the two rounded ratios in (a) above 0 (Round to two decimal places.) Using the rounded average calculated above, calculate the following: Equity intrinsic value $ 0 million Equity intrinsic value per share $ 0Valuation 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 a -' $10,015 ' $11,754 Equity assumed value -' $9,212 ' $13,469 NOPAT $1,444 i $440 i $674 Net income $1,377i $366 i $656 Net nonoperating obligations (assets) $(1,369)' $803' $(1,715) Common shares outstanding . . . . 1,160.0 ' . . 157.9' .. 158.53 a. Compute the price to NOPAT ratio for both KLA Tencor Corporation and Lam Research Corporation. Round answers to two decimal places, when applicable. Price to NOPAT ratio KLA Tencor 0 Lam Research 0 b. Use KLA Tencor Corporation and Lam Research Corporation as comparables, along with the price to NOPAT ratios from part a, and then estimate for Applied Materials its company intrinsic value its equity intrinsic value, and its equity intrinsic value per share. 0 Round company and equity intrinsic values to the nearest million. . Round equity intrinsic value per share to two decimal places. Applied Materials Company intrinsic value '3 0 ' million Equity intrinsic value |$ 0 ' million Equityintrinsic value per share I 3 0' Valuation Using the PE 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 $9,568 $11,307 Equity assumed value - $8,765 $13,022 NOPAT $1,444 $440 $674 Net income $1,377 $298 $588 Net nonoperating obligations (assets) $0,369) $803 $(1,715) Common shares outstanding 1,160.0 157.9 158.5 a. Compute the price to net income ratio for both KLA Tencor Corporation and Lam Research Corporation. Round answers to two decimal places, when applicable. Price to Net income ratio KLA Tencor 0 Lam Research 0 b. Use KLA Tencor Corporation and Lam Research Corporation as comparables, along with the price to net income ratios from part a, and then estimate for Applied Materials Inc. its equity intrinsic value and its equity intrinsic value per share. - Round equity intrinsic value to the nearest million. I Round equity intrinsic value per share to two decimal places. Applied Materials Equityintrinsic value '3 0 l million Equity intrinsic value per share I $ 0' l
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