Valuation 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 1,160.0 157.9 158.5 a. Compute the price to net income ratio for both KLA Tencor Corporation and Lam Research Corporation. Round answers to two decimal places, when applicable. Price to Net income ratio KLA Tencor Answer Lam Research Answer
Valuation 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 1,160.0 157.9 158.5 a. Compute the price to net income ratio for both KLA Tencor Corporation and Lam Research Corporation. Round answers to two decimal places, when applicable. Price to Net income ratio KLA Tencor Answer Lam Research Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Valuation 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 | 158.5 |
a. Compute the price to net income ratio for both KLA Tencor Corporation and Lam Research Corporation.
Round answers to two decimal places, when applicable.
| Price to Net income ratio | |
|---|---|
| KLA Tencor | Answer
|
| Lam Research | Answer
|
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