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The following table provides summary information for Tom, In., and its competitors Andy Corp. and Patrick Enterprises. Use the information to compute the Price to
The following table provides summary information for Tom, In., and its competitors Andy Corp. and Patrick Enterprises. Use the information to compute the Price to NOPAT ratio for Andy and Patrick. In addition, using the Andy and Patrick as comparables, compute Tom's company intrinsic value, equity intrinsic value, and equity intrinsic value per share. Next, use the information to compute the Price to Net Income ratio for Andy Corp. and Patrick Enterprises. In addition, using Andy Corp. and Patrick Enterprises as comparables, compute Tom, Inc.'s equity intrinsic value and equity intrinsic value per share. Patrick Andy Corp. Enterprises (amounts in millions) Tom, Inc. Company assumed value S76.25 S140.94 Equity assumed value 70.40 123.30 NOPAT 41.04 8.90 26.56 Net income 40.61 7.43 21.79 Net nonoperating obligations Common shares outstanding 41.20 5.85 17.64 22.98 7.78 11.54
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