Following are financial statement numbers and select ratios for American Eagle Outfitters for 2016, the year ended January 28, 2017.
Forecast assumptions and other financial information for AE Outfitters are as follows:
Required:
a. Use the discounted free cash flow (DCFF) model to estimate the value of AE Outfitters' equity, per share at January 28, 2017.
b. AE Outfitters' shares closed at $14.28 per share on March 10, 2017, the date the 10-K was filed with the SEC. How does your valuation compare with this closing price?

Question

Following are financial statement numbers and select ratios for American Eagle Outfitters for 2016, the year ended January 28, 2017. 
  Forecast assumptions and other financial information for AE Outfitters are as follows:
  Required: 
a. Use the discounted free cash flow (DCFF) model to estimate the value of AE Outfitters' equity, per share at January 28, 2017.
b. AE Outfitters' shares closed at $14.28 per share on March 10, 2017, the date the 10-K was filed with the SEC. How does your valuation compare with this closing price?

Quizplus · Accepted Answer

The Answer of Following are financial statement numbers and select ratios for American Eagle Outfitters for 2016, the year ended January 28, 2017. 
  Forecast assumptions and other financial information for AE Outfitters are as follows:
  Required: 
a. Use the discounted free cash flow (DCFF) model to estimate the value of AE Outfitters' equity, per share at January 28, 2017.
b. AE Outfitters' shares closed at $14.28 per share on March 10, 2017, the date the 10-K was filed with the SEC. How does your valuation compare with this closing price?

Following Are Financial Statement Numbers and Select Ratios for American