Valuation Using Balance Sheet Multiples The following table provides summary data for Guess? Inc. and its competitors, Ralph Lauren Corp. and The Gap Inc. In millions Company assumed value. Equity assumed value Net operating assets. Book value of equity... Net nonoperating obligations (assets) Common shares outstanding. Guess? $606 $837 $(171) 65.6 shares Ralph Lauren $ 8,906 $10,014 $ 2.179 $ 3.287 $(1,108) 77.2 shares The Gap $9,440 $9.560 $3,433 $3,553 $ (120) 375.8 shares Required a. Compute the price to net operating assets ratio for both Ralph Lauren and Gap. 6. Use Ralph Lauren and Gap as comparables, along with the price to NOA ratios from part a, and then estimate for Guess? its company intrinsic value, its equity intrinsic value, and its equity intrinsic value per share. c. Compute the PB ratio for both Ralph Lauren and Gap. d. Use Ralph Lauren and Gap as comparables, along with the PB ratios from part c, and then estimate for Guess? its equity intrinsic value and its equity intrinsic value per share.

Valuation Using Balance Sheet Multiples The following table provides summary data for Guess? Inc. and its competitors, Ralph Lauren Corp. and The Gap Inc. In millions Company assumed value. Equity assumed value Net operating assets. Book value of equity... Net nonoperating obligations (assets) Common shares outstanding. Guess? $606 $837 $(171) 65.6 shares Ralph Lauren $ 8,906 $10,014 $ 2.179 $ 3.287 $(1,108) 77.2 shares The Gap $9,440 $9.560 $3,433 $3,553 $ (120) 375.8 shares Required a. Compute the price to net operating assets ratio for both Ralph Lauren and Gap. 6. Use Ralph Lauren and Gap as comparables, along with the price to NOA ratios from part a, and then estimate for Guess? its company intrinsic value, its equity intrinsic value, and its equity intrinsic value per share. c. Compute the PB ratio for both Ralph Lauren and Gap. d. Use Ralph Lauren and Gap as comparables, along with the PB ratios from part c, and then estimate for Guess? its equity intrinsic value and its equity intrinsic value per share.

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Description: 15-44. Valuation Using Balance Sheet MultiplesThe following table provides summary data for Guess? Inc. and its competitors, Ralph Lauren Corp.and The Gap Inc.In millionsCompany assumed value..Equity assumed valueNet operating assets..Book value of

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section17.4: Analyzing Financial Statements Using Financial Ratios

Problem 1WT

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