The following table provides summary data for Cerner Corporation (CERN) and its competitors, Allscripts Healthcare Solutions Inc. (MDRX) and McKesson Corporation (MCK). (in millions) CERN MDRX MCK Company assumed value -- $2,063 $21,063 Equity assumed value -- $1,607 $19,962 Net operating assets $4,296 $2,007 $ 9,195 Book value of equity $4,928 $1,551 $ 8,094 Net nonoperating obligations (assets) $(632) $456 $ 1,101 Common shares outstanding 318.4 shares 166.7 shares 184.9 shares (a) Compute the PB ratio for both Allscripts Healthcare and McKesson. (Round your answers to two decimal places.) MDRX Answer MCK Answer
The following table provides summary data for Cerner Corporation (CERN) and its competitors, Allscripts Healthcare Solutions Inc. (MDRX) and McKesson Corporation (MCK). (in millions) CERN MDRX MCK Company assumed value -- $2,063 $21,063 Equity assumed value -- $1,607 $19,962 Net operating assets $4,296 $2,007 $ 9,195 Book value of equity $4,928 $1,551 $ 8,094 Net nonoperating obligations (assets) $(632) $456 $ 1,101 Common shares outstanding 318.4 shares 166.7 shares 184.9 shares (a) Compute the PB ratio for both Allscripts Healthcare and McKesson. (Round your answers to two decimal places.) MDRX Answer MCK Answer
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Valuation Using the PB Multiple
The following table provides summary data for Cerner Corporation (CERN) and its competitors, Allscripts Healthcare Solutions Inc. (MDRX) and McKesson Corporation (MCK).
| (in millions) | CERN | MDRX | MCK |
|---|---|---|---|
| Company assumed value | -- | $2,063 | $21,063 |
| Equity assumed value | -- | $1,607 | $19,962 |
| Net operating assets | $4,296 | $2,007 |
$ 9,195 |
| Book value of equity | $4,928 | $1,551 | $ 8,094 |
| Net nonoperating obligations (assets) | $(632) | $456 | $ 1,101 |
| Common shares outstanding | 318.4 shares | 166.7 shares | 184.9 shares |
(a) Compute the PB ratio for both Allscripts Healthcare and McKesson. (Round your answers to two decimal places.)
MDRX Answer
MCK Answer
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