Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of December 31, 2013 for Stellar Stores, Inc.
|
|
Horizon Period
|
|
|
(in millions)
|
Reported 2013
|
2014
|
2015
|
2016
|
2017
|
Terminal Period
|
|
Sales
|
$37,006
|
$44,777
|
$54,180
|
$65,558
|
$79,325
|
$80,912
|
|
NOPAT
|
1,292
|
1,563
|
1,891
|
2,288
|
2,768
|
2,824
|
|
NOA
|
10,007
|
102
|
14,643
|
17,718
|
21,439
|
21,868
|
Assuming a terminal period growth rate of 2%, a discount rate (WACC) of 8%, common shares outstanding of 814.3 million, and net nonoperating obligations (NNO) of $1,676 million, estimate the value of a share of Stellar common stock using the discounted cash flow (DCF) model as of December 31, 2013.