Question: Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target and its competitors, Kohl's and Wal-Mart. Kohl's Wal-Mart $23,098 $237,306

 Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides

summary data for Target and its competitors, Kohl's and Wal-Mart. Kohl's Wal-Mart

$23,098 $237,306 $22,470 $198,288 $6,040 $89,991 $5,603 $61,573 $628 $39,018 860 shares

Valuation Using Price-to-NOA Multiple and PB Multiple The following table provides summary data for Target and its competitors, Kohl's and Wal-Mart. Kohl's Wal-Mart $23,098 $237,306 $22,470 $198,288 $6,040 $89,991 $5,603 $61,573 $628 $39,018 860 shares 321 shares 41 shares (in millions) Target Company assumed value Equity assumed value Net operating assets Book value of equity Net nonoperating obligations (assets) Common shares outstanding (a) Compute the price to net operating assets ratio for both Kohl's and Wal-Mart. Round your answers to two decimal places Kohl's 0.01 Wal-Mart 0.02 $25,952 $15,033 $10,109 (b) Use Kohl's and Wal-Mart as comparables, along with the price to NOA ratios from part (a), and then estimate for Target 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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!