The following table provides summary data for Applied Materials Inc. and its competitors, KLA Tencor Corporation and Lam Research Corporation.

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

Round answers to two decimal places, when applicable.

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.

• Round company and equity intrinsic values to the nearest million.

• Round equity intrinsic value per share to two decimal places.

QUESTION7 Incorrect Mark 0.00 out of 15.00 P Flag question 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) Company assumed value Equity assumed value NOPAT Net income Net nonoperating obligations (assets) Common shares outstanding Applied Materials KLA Tencor Lam Research $11,754 $13,469 $674 $656 $(1,715) 158.5 $10,015 $9,212 $440 $366 $803 157.9 $1,444 $1,377 $(1,369) 1,160.0 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 19.2 Lam Research 17.5 X 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. Round company and equity intrinsic values to the nearest million. Round equity intrinsic value per share to two decimal places. KLA Tencor Corporation $26.03million Company intrinsic value Equity intrinsic value Equity intrinsic value per share30,191.31 30,191.31X million X Check