Valuation Using Price --NOA Multiple The following table provides summary data for Cerner Corporation and itscompetitors, Eclipsys Corporation and McKesson Corporation. (in millions) Center Eclipsys McKesson Company assumedvalue - - $1, 110 $17, 119 Equity assumed value - - $1, 110 $15, 270 Net operating assets $1, 328 $208 $8, 354 Book valueof equity $1, 132 $208 $6, 505 Net nonoperating obligations (assets) $196 $0 $1,849 Common shares outstanding 80.4shares 54.0 shares 288.8 shares (a) Compute the price to net operating assets ratio for both Eclipsys and McKesson. (Round your answers to two decimal places.) Eclipsys Answer McKesson Answer (b) Use Eclipsys and McKesson ascomparables, along with the rounded price to NOA ratios from part (a), and then estimate for Cerner its companyintrinsic value, its equity intrinsic value, and its equity intrinsic value per share. (Round the intrinsic value and equityintrinsic value to the nearest million and the value per share to the nearest cent.) Average of the two rounded ratios in (a)above Answer (Round to two decimal places.) Using the rounded average calculation above, calculate the following:Intrinsic value $Answer million Equity intrinsic value $Answer million Equity intrinsic value per share $Answera.
Valuation Using Price --NOA Multiple The following table provides summary data for Cerner Corporation and itscompetitors, Eclipsys Corporation and McKesson Corporation. (in millions) Center Eclipsys McKesson Company assumedvalue - - $1, 110 $17, 119 Equity assumed value - - $1, 110 $15, 270 Net operating assets $1, 328 $208 $8, 354 Book valueof equity $1, 132 $208 $6, 505 Net nonoperating obligations (assets) $196 $0 $1,849 Common shares outstanding 80.4shares 54.0 shares 288.8 shares (a) Compute the price to net operating assets ratio for both Eclipsys and McKesson. (Round your answers to two decimal places.) Eclipsys Answer McKesson Answer (b) Use Eclipsys and McKesson ascomparables, along with the rounded price to NOA ratios from part (a), and then estimate for Cerner its companyintrinsic value, its equity intrinsic value, and its equity intrinsic value per share. (Round the intrinsic value and equityintrinsic value to the nearest million and the value per share to the nearest cent.) Average of the two rounded ratios in (a)above Answer (Round to two decimal places.) Using the rounded average calculation above, calculate the following:Intrinsic value $Answer million Equity intrinsic value $Answer million Equity intrinsic value per share $Answera.
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