he following table provides summary data for Target and its competitors, Kohl's and Wal-Mart. (in millions) Target Kohl's Wal-Mart Company assumed value -- $13,487 $322,123 Equity assumed value -- $10,922 $272,541 NOPAT $3,260 $980 $8,312 Net income $2,937 $801 $6,670 Net nonoperating obligations (assets) $11,340 $2,565 $49,582 Common shares outstanding 510.9 shares 159.0 shares 2,844.0 shares (a) Compute the price to NOPAT ratio for both Kohl's and Wal-Mart. Round your answers to two decimal places. Kohl's Answer: Wal-Mart Answer: (b) Use Kohl's and Wal-Mart as comparables, along with the company value to NOPAT ratios from part (a), and then estimate for Target 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.)
he following table provides summary data for Target and its competitors, Kohl's and Wal-Mart. (in millions) Target Kohl's Wal-Mart Company assumed value -- $13,487 $322,123 Equity assumed value -- $10,922 $272,541 NOPAT $3,260 $980 $8,312 Net income $2,937 $801 $6,670 Net nonoperating obligations (assets) $11,340 $2,565 $49,582 Common shares outstanding 510.9 shares 159.0 shares 2,844.0 shares (a) Compute the price to NOPAT ratio for both Kohl's and Wal-Mart. Round your answers to two decimal places. Kohl's Answer: Wal-Mart Answer: (b) Use Kohl's and Wal-Mart as comparables, along with the company value to NOPAT ratios from part (a), and then estimate for Target 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following table provides summary data for Target and its competitors, Kohl's and Wal-Mart.
| (in millions) | Target | Kohl's | Wal-Mart |
|---|---|---|---|
| Company assumed value | -- | $13,487 | $322,123 |
| Equity assumed value | -- | $10,922 | $272,541 |
| $3,260 | $980 | $8,312 | |
| Net income | $2,937 | $801 | $6,670 |
| Net nonoperating obligations (assets) | $11,340 | $2,565 | $49,582 |
| Common shares outstanding | 510.9 shares | 159.0 shares | 2,844.0 shares |
(a) Compute the price to NOPAT ratio for both Kohl's and Wal-Mart.
Round your answers to two decimal places.
Kohl's Answer:
Wal-Mart Answer:
(b) Use Kohl's and Wal-Mart as comparables, along with the company value to NOPAT ratios from part (a), and then estimate for Target 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.)
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