Compute the price to nopat ratio for andy and patrick

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Reference no: EM132487212

The following table provides summary information for Tom, Inc., and its competitors Andy Corp. and Patrick Enterprises.

Question 1: Use the information to compute the Price to NOPAT ratio for Andy and Patrick. In addition, using the Andy and Patrick as comparables, compute Tom's company intrinsic value, equity intrinsic value, and equity intrinsic value per share.

Question 2: Next, use the information to compute the Price to Net Income ratio for Andy Corp. and Patrick Enterprises. In addition, using Andy Corp. and Patrick Enterprises as comparables, compute Tom, Inc.'s equity intrinsic value and equity intrinsic value per share.

(amounts in millions)                                      Tom, Inc.                   Andy Corp.                       Patrick Enterprises

Company assumed value                              $76.25                           $140.94

Equity assumed value                                    70.40                             123.30

NOPAT                                                         41.04                                 8.90                         26.56

Net income                                                     40.61                              7.43                          21.79

Net nonoperating obligations                             41.20                              5.85                           17.64

Common shares outstanding                              22.98                           7.78                                  11.54

Reference no: EM132487212

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