Time left 1:04:31 Bu 4 ayet ered 00 Raquestion Estimating Share Value Using the DCF Model Assume following are forecasts of Abercrombie & Fitch's sales, net operating profit after tax (NOPATI, and net operating assets (NCA) as of January 29, 2011 Reported Horizon Period in millions 2011 2012 2013 2014 2015 Terminal Period Sales 53050 $4500 55,400 $ 60 $ 7,776 57,453 NOPAT 528 686 825 96 954 NDA 1.612 1.544 2229 2.780 2,806 Answer the following requirements assuming a discoude rate (WACC) of 13.3% a terminal period growth rate of 1. common shares outstanding of 86.2 million, and net nonoperating obligations (NNO) of Q55) milion (negative NNO reflects net nonoperating assets such an investments rather than net obligations Estimate the value of a share of Abercrombie & Fitch common stock using the discounted cash flow (DCF) models of January 29, 2011. (Round your answer to the nearest whole number except for the discount factors, shares outstanding and the stock price per share Rounding instructions: Round answers to the nearest whole number unless noted otherwise . Use your rounded answers for subsequent calculations 2012 Heren Period 2013 2014 2015 Terminal Period Do not use negative signs with any of your answers Reported in millions 2011 iner RCFFINOPAT - Incre NOA Discount will round decimal the value of hori CHF Cupraf boron FCFF MacBook Air PIN 2012 Horizon Period 2013 2014 2015 Terminal Period Do not use negative signs with any of your answers Reported le millions 2011 here in NOA FOR NOPAT Increase in NOA Discount factor [1/(t+rw round decimal places) Present stue of horon FCF Cum present value of horon FCFF S Preset value of terminal FCFF Totul firmware 5 Pirm equity value Share outstanding millions Stock pricepershare round on decimal tround two decimal places (1) Assume Abercrombie & Fitch (NF) stock dosed at $77.56 on March 2. 2011. How does your valuation estimate compare with this dosing price? What do you believe are some reasons for the ddference? stock prices are a function of many factors. It is impossible to speculate on the reasons for the difference Our stock price estimate is lower than the ANF market price, indicating that we believe that ANF stock is overvalued. Stock prices are a function of expected NOPAT and NOA, as well as the WACC discount rate Our lower stock price estimate might be due to more pessimistic forecasts or a gher discount rate compared to other investors and analysts model assumption Our stock price estimate is lower than the ANF market price indicating that we believe that ANF stock overvalued. Stock prices are a function of expected NOPAT and NOA, as well as the WACC discount rate. Our lower stock price estimate might be due to more optimistic forecasts or a lower discount rate compared to other investors and analysts model assumption. Our stock price estimate is lower than the ANF market price, indicating that we believe that ANF stock is undervalued stock prices are a function of expected NOPAT and NCA, as well as the WACC discount rate. Our lower stock price estimate might be due to more optimistic forecasts or a lower discount rate compared to other investors and analysts model assumption Save Answers MacBook Air Time left 1:04:31 Bu 4 ayet ered 00 Raquestion Estimating Share Value Using the DCF Model Assume following are forecasts of Abercrombie & Fitch's sales, net operating profit after tax (NOPATI, and net operating assets (NCA) as of January 29, 2011 Reported Horizon Period in millions 2011 2012 2013 2014 2015 Terminal Period Sales 53050 $4500 55,400 $ 60 $ 7,776 57,453 NOPAT 528 686 825 96 954 NDA 1.612 1.544 2229 2.780 2,806 Answer the following requirements assuming a discoude rate (WACC) of 13.3% a terminal period growth rate of 1. common shares outstanding of 86.2 million, and net nonoperating obligations (NNO) of Q55) milion (negative NNO reflects net nonoperating assets such an investments rather than net obligations Estimate the value of a share of Abercrombie & Fitch common stock using the discounted cash flow (DCF) models of January 29, 2011. (Round your answer to the nearest whole number except for the discount factors, shares outstanding and the stock price per share Rounding instructions: Round answers to the nearest whole number unless noted otherwise . Use your rounded answers for subsequent calculations 2012 Heren Period 2013 2014 2015 Terminal Period Do not use negative signs with any of your answers Reported in millions 2011 iner RCFFINOPAT - Incre NOA Discount will round decimal the value of hori CHF Cupraf boron FCFF MacBook Air PIN 2012 Horizon Period 2013 2014 2015 Terminal Period Do not use negative signs with any of your answers Reported le millions 2011 here in NOA FOR NOPAT Increase in NOA Discount factor [1/(t+rw round decimal places) Present stue of horon FCF Cum present value of horon FCFF S Preset value of terminal FCFF Totul firmware 5 Pirm equity value Share outstanding millions Stock pricepershare round on decimal tround two decimal places (1) Assume Abercrombie & Fitch (NF) stock dosed at $77.56 on March 2. 2011. How does your valuation estimate compare with this dosing price? What do you believe are some reasons for the ddference? stock prices are a function of many factors. It is impossible to speculate on the reasons for the difference Our stock price estimate is lower than the ANF market price, indicating that we believe that ANF stock is overvalued. Stock prices are a function of expected NOPAT and NOA, as well as the WACC discount rate Our lower stock price estimate might be due to more pessimistic forecasts or a gher discount rate compared to other investors and analysts model assumption Our stock price estimate is lower than the ANF market price indicating that we believe that ANF stock overvalued. Stock prices are a function of expected NOPAT and NOA, as well as the WACC discount rate. Our lower stock price estimate might be due to more optimistic forecasts or a lower discount rate compared to other investors and analysts model assumption. Our stock price estimate is lower than the ANF market price, indicating that we believe that ANF stock is undervalued stock prices are a function of expected NOPAT and NCA, as well as the WACC discount rate. Our lower stock price estimate might be due to more optimistic forecasts or a lower discount rate compared to other investors and analysts model assumption Save Answers MacBook Air