aluation Using the PE Multiple The following table provides summary data for Applied Materials Inc. and its competitors, KLA Tencor Corporation and Lam Research Corporation. (in millions) Applied Materials KLA Tencor Lam Research Company assumed value - $9,568 $11,307 Equity assumed value - $8,765 $13,022 NOPAT $1,444 $440 $674 Net income $1,377 $298 $588 Net nonoperating obligations (assets) $(1,369) $803 $(1,715) Common shares outstanding 1,160.0 157.9 b. Use KLA Tencor Corporation and Lam Research Corporation as comparables, along with the price to net income ratios from part a, and then estimate for Applied Materials Inc. its equity intrinsic value and its equity intrinsic value per share. Round equity intrinsic value to the nearest million. Round equity intrinsic value per share to two decimal places. Applied Materials Equity intrinsic value Answer million Equity intrinsic value per share Answer
aluation Using the PE Multiple The following table provides summary data for Applied Materials Inc. and its competitors, KLA Tencor Corporation and Lam Research Corporation. (in millions) Applied Materials KLA Tencor Lam Research Company assumed value - $9,568 $11,307 Equity assumed value - $8,765 $13,022 NOPAT $1,444 $440 $674 Net income $1,377 $298 $588 Net nonoperating obligations (assets) $(1,369) $803 $(1,715) Common shares outstanding 1,160.0 157.9 b. Use KLA Tencor Corporation and Lam Research Corporation as comparables, along with the price to net income ratios from part a, and then estimate for Applied Materials Inc. its equity intrinsic value and its equity intrinsic value per share. Round equity intrinsic value to the nearest million. Round equity intrinsic value per share to two decimal places. Applied Materials Equity intrinsic value Answer million Equity intrinsic value per share Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
aluation Using the PE Multiple
The following table provides summary data for Applied Materials Inc. and its competitors, KLA Tencor Corporation and Lam Research Corporation.
|
(in millions) |
Applied Materials | KLA Tencor | Lam Research | ||
|---|---|---|---|---|---|
| Company assumed value | - | $9,568 | $11,307 | ||
| Equity assumed value | - | $8,765 | $13,022 | ||
| $1,444 | $440 | $674 | |||
| Net income | $1,377 | $298 | $588 | ||
| Net nonoperating obligations (assets) | $(1,369) | $803 | $(1,715) | ||
| Common shares outstanding | 1,160.0 | 157.9 |
|
b. Use KLA Tencor Corporation and Lam Research Corporation as comparables, along with the price to net income ratios from part a, and then estimate for Applied Materials Inc. its equity intrinsic value and its equity intrinsic value per share.
-
Round equity intrinsic value to the nearest million.
-
Round equity intrinsic value per share to two decimal places.
| Applied Materials | |||
|---|---|---|---|
| Equity intrinsic value | Answer
|
million | |
| Equity intrinsic value per share | Answer
|
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