Provided below are an analyst's forecasts of revenue, net operating profit after tax (NOPAT), and net operating assets (NOA) as of 12/31/2021 for Amgen for the period 2022 through 2025. Forecast Horizon Period 2025 2023 2024 $25.979.0 $27.018.2 $28.098.9 $29.222.8 $30,391.8 $6.624.6 $6.889.6 $7.165.2 $7.451.8 $7,749.9 $33,055.0 $34.377.2 $35,752.3 $37,182.4 $38,669.7 ($ millions) Reported 2021 2022 Revenue: NOPAT: NOA: The following additional information is provided (dollar and share amounts in millions). . Common shares outstanding: 558.300 • Net nonoperating obligations (NNO): $26,355.0 Noncontrolling interest (NCI): $0.0 • Preferred stock: $0.0 • WACC: 6.5% • Revenue growth in 2022-2025: 4.0% • Terminal period growth: 2.0% Use the information above to calculate the terminal period values of revenue, NOPAT, NOA, and ROPI. Do not round intermediate calculations. All values other than per-share amounts are shown in millions. $ millions Revenue: NOPAT: NOA: ROPI: Terminal Period [ Select] V [Select] v [Select] [Select] v Use the ROPI valuation method (and the information above) to answer the following questions. According to the ROPI model, what is the value per share of common stock? The company's stock closed at $222.66 on 02/16/2022, the date the 10-K was filed with the SEC. In comparing your valuation estimate (also known as 'intrinsic value') with the actual stock price was the stock overvalued or undervalued and why? [Select] V [Select]
Provided below are an analyst's forecasts of revenue, net operating profit after tax (NOPAT), and net operating assets (NOA) as of 12/31/2021 for Amgen for the period 2022 through 2025. Forecast Horizon Period 2025 2023 2024 $25.979.0 $27.018.2 $28.098.9 $29.222.8 $30,391.8 $6.624.6 $6.889.6 $7.165.2 $7.451.8 $7,749.9 $33,055.0 $34.377.2 $35,752.3 $37,182.4 $38,669.7 ($ millions) Reported 2021 2022 Revenue: NOPAT: NOA: The following additional information is provided (dollar and share amounts in millions). . Common shares outstanding: 558.300 • Net nonoperating obligations (NNO): $26,355.0 Noncontrolling interest (NCI): $0.0 • Preferred stock: $0.0 • WACC: 6.5% • Revenue growth in 2022-2025: 4.0% • Terminal period growth: 2.0% Use the information above to calculate the terminal period values of revenue, NOPAT, NOA, and ROPI. Do not round intermediate calculations. All values other than per-share amounts are shown in millions. $ millions Revenue: NOPAT: NOA: ROPI: Terminal Period [ Select] V [Select] v [Select] [Select] v Use the ROPI valuation method (and the information above) to answer the following questions. According to the ROPI model, what is the value per share of common stock? The company's stock closed at $222.66 on 02/16/2022, the date the 10-K was filed with the SEC. In comparing your valuation estimate (also known as 'intrinsic value') with the actual stock price was the stock overvalued or undervalued and why? [Select] V [Select]
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Provided below are an analyst's forecasts of revenue, net operating profit after tax (NOPAT), and net operating assets (NOA) as of 12/31/2021 for Amgen for the period 2022 through 2025.
($ millions) Reported 2021
Revenue:
NOPAT:
NOA:
The following additional information is provided (dollar and share amounts in millions).
• Common shares outstanding: 558.300
• Net nonoperating obligations (NNO): $26,355.0
• Noncontrolling interest (NCI): $0.0
• Preferred stock: $0.0
• WACC: 6.5%
• Revenue growth in 2022-2025: 4.0%
• Terminal period growth: 2.0%
Use the information above to calculate the terminal period values of revenue, NOPAT, NOA, and ROPI. Do not round intermediate calculations. All values other than per-share amounts are shown in millions.
$ millions
Forecast Horizon Period
2025
2022 2023 2024
$25.979.0 $27,018.2 $28.098.9 $29.222.8 $30,391.8
$6.624.6 $6,889.6 $7,165.2 $7.451.8 $7,749.9
$33,055.0 $34.377.2 $35,752.3 $37,182.4 $38,669.7
Revenue:
NOPAT:
NOA:
ROPI:
Terminal Period
[Select] V
[Select]
[Select]
[Select] ✔
Use the ROPI valuation method (and the information above) to answer the following questions.
According to the ROPI model, what is the value per share of common stock?
The company's stock closed at $222.66 on 02/16/2022, the date the 10-K was filed with the SEC. In comparing your valuation estimate (also known as 'intrinsic value') with the actual stock
price, was the stock overvalued or undervalued, and why?
[Select] v
[Select]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb22b786b-c75a-4c4f-9227-150646639226%2F3e1d1284-b12f-4865-92a0-b6647d7f22d4%2Fkyy484_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Provided below are an analyst's forecasts of revenue, net operating profit after tax (NOPAT), and net operating assets (NOA) as of 12/31/2021 for Amgen for the period 2022 through 2025.
($ millions) Reported 2021
Revenue:
NOPAT:
NOA:
The following additional information is provided (dollar and share amounts in millions).
• Common shares outstanding: 558.300
• Net nonoperating obligations (NNO): $26,355.0
• Noncontrolling interest (NCI): $0.0
• Preferred stock: $0.0
• WACC: 6.5%
• Revenue growth in 2022-2025: 4.0%
• Terminal period growth: 2.0%
Use the information above to calculate the terminal period values of revenue, NOPAT, NOA, and ROPI. Do not round intermediate calculations. All values other than per-share amounts are shown in millions.
$ millions
Forecast Horizon Period
2025
2022 2023 2024
$25.979.0 $27,018.2 $28.098.9 $29.222.8 $30,391.8
$6.624.6 $6,889.6 $7,165.2 $7.451.8 $7,749.9
$33,055.0 $34.377.2 $35,752.3 $37,182.4 $38,669.7
Revenue:
NOPAT:
NOA:
ROPI:
Terminal Period
[Select] V
[Select]
[Select]
[Select] ✔
Use the ROPI valuation method (and the information above) to answer the following questions.
According to the ROPI model, what is the value per share of common stock?
The company's stock closed at $222.66 on 02/16/2022, the date the 10-K was filed with the SEC. In comparing your valuation estimate (also known as 'intrinsic value') with the actual stock
price, was the stock overvalued or undervalued, and why?
[Select] v
[Select]
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