Comprehensive Case (Essay Sample)

Name
Professor
Subject
Date
Comprehensive Case Part (4D)
The valuation process of the shares consists of three processes. It is crucial to identify the comparable assets and to obtain the market values of the particular shares. The second step will involve the conversion of the market values into standardized values relative to a critical statistic. It is of importance since comparison of the absolute prices seems to be a milestone. At that point, valuation multiples can be created. The last process involves the application of the valuation multiples to the vital statistic of the valued assets. It is crucial to control any difference between assets and the peer group that is in a position to affect the multiple (Penman & Stephen 24). The concept of valuation multiple accounts for an expression of the relative amount of assets as the principal statistical value.
Net Operating Profit (NOA) can be calculated by getting the difference between Operating Assets and Operating Liabilities.
NOA= $131,510.00-$128,248.00
=$3262.00
Net Operating Profit after Tax (NOPAD) = Net Operating Tax before Tax-Tax on Operating Profit
NOPAT=$18,800.95-$17,991.40
= $809.55
NI multiple= profit margin*Sales Revenue
=3.5%*4.1%= 0.1435%
BV multiple= ROE-RNOA
=$34,567.00-$23,897.00
=$10670.00
The reason for the difference in the multiple values depends on the investment decisions available in the market. In the stock exchange market, the price keeps changing and due to that, investment dec...