Question
The following table provides summary information for Tom, Inc., and its competitors Andy Corp. and Patrick Enterprises. Use the information to compute the Price to
The following table provides summary information for Tom, Inc., 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 Toms 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.
(amounts in millions) | Tom, Inc. | Andy Corp. | Patrick Enterprises |
Company assumed value | $76.25 | $140.94 | |
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 | 41.20 | 5.85 | 17.64 |
Common shares outstanding | 22.98 | 7.78 | 11.54 |
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