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Estimating Share Value Using the DCF Model Following are forecasts of Home Depots sales, net operating profit after tax (NOPAT), and net operating assets (NOA)
Estimating Share Value Using the DCF 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 $124,433 $133,144 $142,464 $152,436 $163,107 $166,369 NOPAT 13,884 14,912 15,956 17,073 18,268 18,633 NOA 29,378 31,432 33,632 35,986 38,505 39,275 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 $31,538 million. Required a. Estimate the value of a share of Home Depots common stock using the disc
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