You have the following data and information on PROGRP, a company producing computer systems for use in corporate treasuries.

Forecast	2021	2022	2023	2024	2025
EBIT ($m)	3402	3657	3931	4226	4543
Interest Expenses ($m)	-13	-14	-15	-16	-17
Earning Before Tax ($m)	3389	3643	3917	4210	4526
Taxes ($m)	-1017	-1093	-1175	-1263	-1358
Depreciation Expenses ($m)	-1084	-1350	-1556	-1762	-1894
Net CAPEX ($m)	-1980	-3590	-8860	-2710	-1960
Net Changes in NWC ($m)	1160	1644	-1450	932	1002

Cash flow assumptions and other information:

Cash flow assumptions and other information:

The above free cash flow forecasts over 2021-2025 reflect the high levels of capital expenditure (CAPEX) that will be required to grow PROGRPs business. From 2021 to 2025, it is expected that the company will grow EBIT at 7.5 per cent per annum. Beyond 2025, competition will have eroded margins and the industry sector will be entering the maturity phase of the industry life cycle. Growth in free cash flow is expected to continue, perpetually, at the expected average rate of growth for the economy of four per cent per annum.

PROGRPs sales for 2020 were $8,890 million. For 2021, sales of $10,210 million are forecasted. Earnings for 2020 was $2,304 million, with earnings of $2,430 expected for PROGRP in 2021. The book value of equity was $5,058 million as of the end of 2020, with 670 million PROGRP shares outstanding. PROGRPs interest-bearing debt stood at $425 million at the end of 2020. Taxes are calculated by applying the corporate tax rate (30%) to earnings before tax. Currently, the market price per share is $31.55. The after-tax cost of capital (WACC) for PROGRP is 8.65 per cent. Comparative industry average pricing ratios are P/S of 2.6, P/E of 12.2 and P/BV of 6.1

a. Develop three market-based relative valuations of the per share value of PROGRP.

b. Estimate the Free Cash Flow to the Firm for PROGRP and develop an estimate of the per share value of PROGRP based on free cash flow.

c. Based on your valuations in a. and b., do you believe PROGRP to currently be fairly valued on a per share basis? Briefly justify your decision.