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 (5 millions) Sales Net Incone 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) MY ELTM/EBIT(1 Tax rate) (X) i firm/sales (X) V equity/Bv equity (X) tir/By tin (X) Indication Priceleamings (0) MV fm/EBIT(1-Tax rate) () MV firmisales (X MV equity BV equity (X) MV firm/BV firm (0) 10,321 1,615 362 Stylar's implied stock value 2,215 26.201 9,112 2,790 Stryker 17.8 18.7 3.5 3.3 2.0 BAX 18.4 23.0 3.1 1.8 24.6 23.9 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. 4.2 2.3 COV 20,5 20.5 3.5 3.3 2.6 NOT 4.4 3.3 1.8 AND 22.5 24.0 4.3 4.5 3.6 872 26.3 5.2 4.4 2.1 AME 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 (5 millions) Sales Net Incone 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) MY ELTM/EBIT(1 Tax rate) (X) i firm/sales (X) V equity/Bv equity (X) tir/By tin (X) Indication Priceleamings (0) MV fm/EBIT(1-Tax rate) () MV firmisales (X MV equity BV equity (X) MV firm/BV firm (0) 10,321 1,615 362 Stylar's implied stock value 2,215 26.201 9,112 2,790 Stryker 17.8 18.7 3.5 3.3 2.0 BAX 18.4 23.0 3.1 1.8 24.6 23.9 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. 4.2 2.3 COV 20,5 20.5 3.5 3.3 2.6 NOT 4.4 3.3 1.8 AND 22.5 24.0 4.3 4.5 3.6 872 26.3 5.2 4.4 2.1 AME 20.8 21.5 3.8 2.5 1.8
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 (5 millions)
Sales
Net incone
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)
HV firm/EBIT(1 Tax rate) (X)
HV firm/sales (X)
MV equity/av equity (X)
HV tir/BV tirn (X)
Indication
Priceleamings (X)
MV frm/EBIT(1-Tax rate) (X)
MV firm/sales (X)
MV equity BV equity (X)
MV firm/BV frm (XX)
10,321
1,615
Stylar's implied
stock value
362
2,215
26.201
9,112
2,790
Stryker
17.8
18.7
3.5
3.3
2.0
BAX
18.4
23.0
3.1
5.3
Box
24.6
23.9
3.1
4.2
2.3
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.
.COM
20.5
20.5
3.5
3.3
2.6
NOT
14.2
17.2
4.4
.3
1.0
ANN
22.5
24.8
4.3
4.5
3.6
STJ
23.4
26.3
5.2
4.4
2.1
ZHE
20.8
21.5
3.8
2.5
1.0
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