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Stryker Corporation is a leading medical technology company headquartered in Kalamazoo, Michigan, that trades on the New York Stock Exchange. Use the following information on Stryker and seven other similar companies (indicated by their ticker symbols) to calculate Stryker's implied stock value using each of the 5 indicators of value provided in the chart below. Use the mean values for the 7 other similar companies in the industry as the benchmark to calculate Stryker's implied stock value using its financial data Stryker Corporation ($ millions) Sales Net income Number of common shares (millions) Earnings before interest and tax Tax rate Book value of equity Book value interest-bearing debt Indicators of Value Price/earnings (X) MV firm/EBIT(1 - Tax rate) (X) MV firm/sales (X) MV equity/BV equity (X) MV firm/BV firm (X) Indicators Price/earnings (X) MV firm/EBIT(1 - Tax rate) (X) MV firm/sales (X) MV equity/BV equity (X) MV firm/BV firm (X) Stryker's implied stock value 9,821 1,810 357 93.66 2,195 24.70% 9,087 2,780 Stryker 17.8 18.4 3.5 3.2 2.0 BAX 17.8 22.5 3.1 4.8 1.8 BDX 23.9 22.9 3.1 4.2 2.1 MV = Market value; BV = Book value. Market value is estimated as book value of interest-bearing debt + market value of equity. Note: Round your intermediate calculations to 1 decimal place. Round your final answers to 2 decimal places. cov 20.3 20.5 3.5 3.3 2.1 MDT 13.7 16.7 4.3 3.1 1.8 SNN 22.0 24.3 3.8 4.0 3.1 STJ 22.9 25.8 4.7 3.9 2.1 ZMH 20.8 21.5 3.8 2.5 1.8

Stryker Corporation is a leading medical technology company headquartered in Kalamazoo, Michigan, that trades on the New York Stock Exchange. Use the following information on Stryker and seven other similar companies (indicated by their ticker symbols) to calculate Stryker's implied stock value using each of the 5 indicators of value provided in the chart below. Use the mean values for the 7 other similar companies in the industry as the benchmark to calculate Stryker's implied stock value using its financial data Stryker Corporation ($ millions) Sales Net income Number of common shares (millions) Earnings before interest and tax Tax rate Book value of equity Book value interest-bearing debt Indicators of Value Price/earnings (X) MV firm/EBIT(1 - Tax rate) (X) MV firm/sales (X) MV equity/BV equity (X) MV firm/BV firm (X) Indicators Price/earnings (X) MV firm/EBIT(1 - Tax rate) (X) MV firm/sales (X) MV equity/BV equity (X) MV firm/BV firm (X) Stryker's implied stock value 9,821 1,810 357 93.66 2,195 24.70% 9,087 2,780 Stryker 17.8 18.4 3.5 3.2 2.0 BAX 17.8 22.5 3.1 4.8 1.8 BDX 23.9 22.9 3.1 4.2 2.1 MV = Market value; BV = Book value. Market value is estimated as book value of interest-bearing debt + market value of equity. Note: Round your intermediate calculations to 1 decimal place. Round your final answers to 2 decimal places. cov 20.3 20.5 3.5 3.3 2.1 MDT 13.7 16.7 4.3 3.1 1.8 SNN 22.0 24.3 3.8 4.0 3.1 STJ 22.9 25.8 4.7 3.9 2.1 ZMH 20.8 21.5 3.8 2.5 1.8

Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section: Chapter Questions
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Stryker Corporation is a leading medical technology company headquartered in Kalamazoo, Michigan, that trades on the New York Stock Exchange. Use the following information on Stryker and seven other similar companies (indicated by their ticker symbols) to calculate Stryker's implied stock value using each of the 5 indicators of value provided in the chart below. Use the mean values for the 7 other similar companies in the industry as the benchmark to calculate Stryker's implied stock value using its financial data Stryker Corporation ($ millions) Sales Net income Number of common shares (millions) Earnings before interest and tax Tax rate Book value of equity Book value interest-bearing debt Indicators of Value Price/earnings (X) MV firm/EBIT (1 - Tax rate) (X) MV firm/sales (X) MV equity/BV equity (X) MV firm/BV firm (X) Indicators Price/earnings (X) MV firm/EBIT(1 - Tax rate) (X) MV firm/sales (X) MV equity/BV equity (X) MV firm/BV firm (X) Stryker's implied stock value 9,821 1,810 357 2,195 24.70% 9,087 2,780 93.66 Stryker 17.8 18.4 3.5 3.2 2.0 BAX 17.8 22.5 3.1 4.8 1.8 BDX 23.9 22.9 3.1 4.2 2.1 MV = Market value; BV = Book value. Market value is estimated as book value of interest-bearing debt + market value of equity. Note: Round your intermediate calculations to 1 decimal place. Round your final answers to 2 decimal places. COV 20.3 20.5 3.5 3.3 2.1 MDT 13.7 16.7 4.3 3.1 1.8 SNN 22.0 24.3 3.8 4.0 3.1 STJ 22.9 25.8 4.7 3.9 2.1 ZMH 20.8 21.5 3.8 2.5 1.8
Transcribed Image Text:Stryker Corporation is a leading medical technology company headquartered in Kalamazoo, Michigan, that trades on the New York Stock Exchange. Use the following information on Stryker and seven other similar companies (indicated by their ticker symbols) to calculate Stryker's implied stock value using each of the 5 indicators of value provided in the chart below. Use the mean values for the 7 other similar companies in the industry as the benchmark to calculate Stryker's implied stock value using its financial data Stryker Corporation ($ millions) Sales Net income Number of common shares (millions) Earnings before interest and tax Tax rate Book value of equity Book value interest-bearing debt Indicators of Value Price/earnings (X) MV firm/EBIT (1 - Tax rate) (X) MV firm/sales (X) MV equity/BV equity (X) MV firm/BV firm (X) Indicators Price/earnings (X) MV firm/EBIT(1 - Tax rate) (X) MV firm/sales (X) MV equity/BV equity (X) MV firm/BV firm (X) Stryker's implied stock value 9,821 1,810 357 2,195 24.70% 9,087 2,780 93.66 Stryker 17.8 18.4 3.5 3.2 2.0 BAX 17.8 22.5 3.1 4.8 1.8 BDX 23.9 22.9 3.1 4.2 2.1 MV = Market value; BV = Book value. Market value is estimated as book value of interest-bearing debt + market value of equity. Note: Round your intermediate calculations to 1 decimal place. Round your final answers to 2 decimal places. COV 20.3 20.5 3.5 3.3 2.1 MDT 13.7 16.7 4.3 3.1 1.8 SNN 22.0 24.3 3.8 4.0 3.1 STJ 22.9 25.8 4.7 3.9 2.1 ZMH 20.8 21.5 3.8 2.5 1.8
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