Estimate target enterpris and firm value of equity

Assignment Help Financial Management

Reference no: EM131848988

Part E Target Corporation: EV/EBITDA Analysis Let’s suppose you forecast Target’s EBIT for the year ending January 31, 2013, to be $5,352, and you forecast Target’s depreciation and amortization to be $2,361. A research analyst determines that an appropriate forward-looking EV/EBITDA multiple for Target is 6.9 times. Based on this information, 1. Estimate Target’s enterprise value, or EV. 2. Next, incorporating the value of Target’s debt, estimate the firm’s value of equity. 3. Finally, based on 679.1 million shares outstanding, estimate the intrinsic value per share and compare it with Target’s stock price on January 31, 2012, of $50.81. 4. Based on this analysis, is Target’s stock overvalued or undervalued?

Reference no: EM131848988

Questions Cloud

How has capitalism and the capitalist class changed society : How has capitalism and the capitalist class changed society in ways that set the stage for the next (non-capitalist, or communist) society?

Descriptive research design-experimental research design : For my research proposal, do I need to use a Descriptive research design or an Experimental research design? Why?

Examine the crates which are a jumble of broken glass : You examine the crates, which are a jumble of broken glass, tangled wire, and chipped and splintered instrument cases.

What the two main phases of the cell cycle are : Explain and describe what the two main phases of the cell cycle are. What must happen before Mitosis can begin?

Estimate target enterpris and firm value of equity : Estimate Target’s enterprise value, or EV. Next, incorporating the value of Target’s debt, estimate the firm’s value of equity.

Create a research project you would find valuable : Create a research project you would find valuable if you had unlimited time and resources.

Treament protocl for wlaking pneumonia : What is meant by best prtaactices and treament protocl for wlaking pneumonia?

What does the pre-reproduction percentage : What does the pre-reproduction percentage tell us about future growth, for example a pre-reproduction percentage of 18% would indicate what?

Write incident report to harry vincent of protection agency : Write an incident report to Harry Vincent of the Environmental Protection Agency. For the next hour Mr. Vincent demonstrated how to use the air sam- pler.

User Account

All Pages