Valuation Using Price - to - NOA Multiple The following table provides summary data for Cerner Corporation
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Question:
Valuation Using PricetoNOA Multiple
The following table provides summary data for Cerner Corporation and its competitors, Eclipsys Corporation and McKesson Corporation.
in millions Center Eclipsys McKesson
Company assumed value $ $
Equity assumed value $ $
Net operating assets $ $ $
Book value of equity $ $ $
Net nonoperating obligations assets $ $ $
Common shares outstanding shares shares shares
a Compute the price to net operating assets ratio for both Eclipsys and McKesson. Round your answers to two decimal places.
Eclipsys Answer
McKesson Answer
b Use Eclipsys and McKesson as comparables, along with the rounded price to NOA ratios from part a and then estimate for Cerner 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.
Using the rounded average calculation above, calculate the following:
Intrinsic value $Answer
million
Equity intrinsic value $Answer
million
Equity intrinsic value per share $Answer
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