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Valuation Using the PB Multiple The following table provides summary data for Cerner Corporation (CERN) and its competitors, Allscripts Healthcare Solutions (MDRX) and McKesson (MCK). (in millions) CERN MDRX MCK Company assumed value $1,960 $23,685 Equity assumed value $1,624 $21,268 Net operating assets $1,484 $1,620 $ 9,487 Book value of equity $2,834 $1,284 $ 7,070 Net nonoperating obligations (assets) $(1,350) $ 336 $ 2,417 Common shares outstanding 172.1 shares 172.4 shares 197.0 shares (a) Compute the PB ratio for both MDRX and MCK. (Round your answers to two decimal places.) MDRX 1.26 MCK 3.01 (b) Use MDRX and MCK 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 3,570.8 (Round to two decimal places.) Using the rounded average calculated above, calculate the following: Equity intrinsic value $ 8,530.3 million Equity intrinsic value per share $ 49.57