Valuation Using the PE Multiple The following table provides summary data for Applied Materials Inc. and its competitors, KLA Tencor Corporation and Lam Research Corporation. (in millions) Company assumed value Equity assumed value NOPAT Net income Net nonoperating obligations (assets) Common shares outstanding Applied Materials $1,444 $1,377 (1,369) 1,160.0 KLA Tencor $9,790 $8,987 $440 $421 5803 157.9 Lam Research $11,529 $13,244 $674 $711 5(1,715) 158.5 a. Compute the price to net income ratio for both KLA Tencor Corporation and Lam Research Corporation. Round answers to two decimal places, when applicable Price to Net income ratio KLA Tencor 21.35 Lam Research 18.63 b. Use KLA Tencor Corporation and Lam Research Corporation as comparables, along with the price to net income ratios from part a, and then estimate for Applied Materials Inc. its equity intrinsic value and its equity intrinsic value per share Round equity intrinsic value to the nearest million. Round equity intrinsic value per share to two decimal places. KLA Tencor Corporation Equity intrinsic value million Equity intrinsic value per share S