You have been hired to evaluate FatBurger Inc. that operates fast food restaurants. You plan to do a quick valuation based on a simplified 2-stage model. The last known operating profit (EBIT) of the company was 200 million. The company reinvested 60% of its NOPAT last year and plans to keep this reinvestment rate constant for the next three years. The expected growth for next three years is forecasted as 15% a year. The marginal tax rate for the company is 25%. After three years FatBurger Inc. is expected to become a mature company with only 3.0% growth rate in perpetuity and the reinvestment rate declining to 25% of itsprojected NOPAT. Company liabilities include 500 million as interest bearing debt. FatBurger has also non-core financial assets with current market value equal to 50 million. The company cost of capital is currently estimated as 10%. The company has 10 million shares outstanding.

Based on the data above, find the market value of equity and the intrinsic value of the share?

You have been hired to evaluate FatBurger Inc. that operates fast food restaurants. You plan to do a quick valuation based on a simplified 2-stage model. The last known operating profit (EBIT) of the company was 200 million. The company reinvested 60% of it's NOPAT last year and plans to keep this reinvestment rate constant for the next three years. The expected growth for next three years is forecasted as 15% a year. The marginal tax rate for the company is 25%. After three years FatBurger Inc. is expected to become a mature company with only 3.0% growth rate in perpetuity and the reinvestment rate declining to 25% of it's projected NOPAT. Company liabilities include 500 million as interest bearing debt. FatBurger has also non-core financial assets with current market value equal to 50 million. The company cost of capital is currently estimated as 10%. The company has 10 million shares outstanding. Based on the data above, find the market value of equity and the intrinsic value of the share