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The BC security analyst group needs to make investment recommendation as of September 31, 2012 for Best Buy to its clients. To estimate a fundamental

The BC security analyst group needs to make investment recommendation as of September 31, 2012 for Best Buy to its clients. To estimate a fundamental value of the company, the group has decided to use a DCF method using a cost of capital of 10.21%. On September 31,2020, the number of shares outstanding is $ 336.7 million and the price per share is $ 25.20. The cash flow projections for the next five year is summarized in the below table.

Period Ending March 31 (Unit: $ Million) 2013 E 2014 E 2015 E 2016 E 2017 E
EBIT 1,502.4 1,319.6 1,236.3 1,157.3 1,144.9
Depreciation & Amortization 951.7 989.3 1,026.4 1,060.1 1,094.7
Deferred Taxes (30.0) (134.0) 28.0 (30.0) (134.0)
Others 0.0 0.0 0.0 0.0 0.0
Changes in Working Capital (296.5) 35.9 26.3 25.8 (12.6)
Capital Expenditures (749.5) (770.5) (760.0) (693.) (683.3)
Taxes (508.7) (446.8) (418.6) (391.9) (387.7)
Total Unlevered Free Cash Flows 869.4 993.5 1,138.3 1,128.3 1,022.0

1. The PV of for the next five years is____ . (Round to the nearest tenth.)

2. When the company's EV/EBITDA multiple is 5.3, the terminal value (i.e., EV) in year 5 using the multiple method would be _____ and the present value of the terminal value would be _________. (Round to the nearest tenth.)

3. The estimated enterprise value (EV) of Best Buy is and the equity value is when the amount of Net Debt, Non-controlling interests, and preferred securities is $ 1,546.0 MM. (Round to the nearest tenth.)

4. The fundamental stock price per share would be ____ (Round to the nearest tenth.)

5. Based on the above value, the analyst group can make a recommendation (i.e., buy or sell) because the current stock of BEST BUY is _____ (i.e., overvalued or undervalued.).

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