Using the data in Exhibit 8.5 for GIS, CPB, and SJM, estimate the value per share of K using an NOPAT multiple. Additional information for the process is that the operating value and equity value of GIS are $46,409 and $30,735, respectively. Determine whether, based on this estimate, K is over- or underpriced at its May 1, 2019 price of $59.39. Discuss the validity of the result and what drives your conclusions. EXHIBIT 8.5 Data for Valuation Using Income Statement Multiples (in millions) GIS K СРВ SJM Operating value Equity value NOPAT. . Net income . NFL (NFA) Common shares outstanding $ $ $ 1,866 $ 1,563 $15,674 599 shares $29,831 $20,430 $ 1,531 $ 1,344 $ 9,401 344 shares $21,099 $11,534 $ 156 $ 164) $ 9,565 301 shares $20,004 $13,967 $ 736 $ 629 $ 6,037 114 shares |

Using the data in Exhibit 8.5 for GIS, CPB, and SJM, estimate the value per share of K using an NOPAT multiple. Additional information for the process is that the operating value and equity value of GIS are $46,409 and $30,735, respectively. Determine whether, based on this estimate, K is over- or underpriced at its May 1, 2019 price of $59.39. Discuss the validity of the result and what drives your conclusions. EXHIBIT 8.5 Data for Valuation Using Income Statement Multiples (in millions) GIS K СРВ SJM Operating value Equity value NOPAT. . Net income . NFL (NFA) Common shares outstanding $ $ $ 1,866 $ 1,563 $15,674 599 shares $29,831 $20,430 $ 1,531 $ 1,344 $ 9,401 344 shares $21,099 $11,534 $ 156 $ 164) $ 9,565 301 shares $20,004 $13,967 $ 736 $ 629 $ 6,037 114 shares |

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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