Last HW.xlsx - A Price to NOPAT multiple = Price to NOPAT...

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A Price to NOPAT multiple = Company Assumed value / NOPAT Price to NOPAT multiple (KLA)= 14.53 Price to NOPAT multiple (LR)= 8.84 B Company intrinsic value = NOPAT*NOPAT market multiple Company intrinsic value (AM) $ 18,535.15 Equity intrinsic value $ 18,330.15 Intrinsic value per share $ 13.58
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A Price to net income = Equity value / Net Income Price to net income (KLA)= 14.53 Price to net income (LAM)= 8.42 B Equity intrinsic value = P/net income*Net Income Intrinsic value per share= Equity Intrinsc value / Common shares Equity intrinsic value = 18008 Intrinsic value per share= 13.34
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A B Computation of intrinsic value (MW)= 2.63 Intrinsic value of equity= 2879 C Price to earning ratio 24.56 Intrinsic value of equity= 60.67 The three companies selected are : AXNA, EXPR and TYLS. The reason is due to having 1)Comparable growth of earnings 2)Price to book ratio is higher for there two companies 3)The debt to equity ratio for these two companies is comparable 4)These companies have higher earnings per share
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