Following are forecasts of Home Depot's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 3, 2019, which the company labels fiscal 2018. Forecast Horizon Period Reported $ millions 2018 Sales $124,433 NOPAT 13,884 NOA 29,378 $133,144 14,912 31,432 2019 Terminal Period 2020 2021 2022 $142,464 $152,436 $163,107 $166,369 15,956 17,073 18,268 18,633 33,632 35,986 38,505 39,275 Answer the following requirements assuming a discount rate (WACC) of 7.85%, a terminal period growth rate of 2%, common shares outstanding of 1,105 million, net nonoperating obligations (NNO) of $31,538 million. Required a. Estimate the value of a share of Home Depot's common stock using the discounted cash flow (DCF) model as of February 3, 2019. Note: Do not round until your final answer; round your final answer to two decimal places. Stock price per share: $Answer b. Home Depot stock closed at $218.57 on March 28, 2019, the date the Form 10-K was filed with the SEC. How does your valuation estimate compare with this closing price?

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