Compute pb ratio for both allscripts healthcare and mckesson

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Reference no: EM133910181

Problem

The following table provides summary data for Cerner Corporation (CERN) and its competitors, Allscripts Healthcare Solutions Inc. (MDRX) and McKesson Corporation (MCK).

(in millions)	CERN	MDRX	MCK
Company assumed value	--	$2,063	$21,063
Equity assumed value	--	$1,607	$19,962
Net operating assets	$4,296	$2,007	$ 9,195
Book value of equity	$4,928	$1,551	$ 8,094
Net nonoperating obligations (assets)	$(632)	$456	$ 1,101
Common shares outstanding	318.4 shares	166.7 shares	184.9 shares

I. Compute the PB ratio for both Allscripts Healthcare and McKesson. Get the instant assignment help.

II. Use Allscripts Healthcare and McKesson as comparables, along with the PB ratios from part I, and then estimate for Cerner its equity intrinsic value and its equity intrinsic value per share.

Reference no: EM133910181

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