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Valuation Using Income Statement Multiples The following table provides summary data for Target and its competitors, Kohl's and Wal - Mart. ( in millions )
Valuation Using Income Statement Multiples
The following table provides summary data for Target and its competitors, Kohl's and WalMart.
in millions Target Kohl's WalMart
Company assumed value $ $
Equity assumed value $ $
NOPAT $ $ $
Net income $ $ $
Net nonoperating obligations assets $ $ $
Common shares outstanding shares shares shares
a Compute the price to NOPAT ratio for both Kohl's and WalMart.
Round your answers to two decimal places.
Kohl's Answer
WalMart Answer
b Use Kohl's and WalMart as comparables, along with the company value to NOPAT ratios from part a and then estimate for Target its company intrinsic value, its equity intrinsic value, and its equity intrinsic value per share.
Round the intrinsic value and 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
Answer
Round to two decimal places.
Use your rounded answer above to calculate the following:
Intrinsic value $Answer
million
Equity intrinsic value $Answer
million
Equity intrinsic value per share $Answer
c Compute the price to net income ratio for both Kohl's and WalMart.
Round your answers to two decimal places.
Kohl's Answer
WalMart Answer
d Use Kohl's and WalMart as comparables, along with the equity to net income ratios from part c and then estimate for Target 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 c above
Answer
Round to two decimal places.
Use the rounded average calculated above to calculate the following:
Equity intrinsic value $Answer
Equity intrinsic value per share $Answer
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