The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$15,403.75||$16,307.33||$16,817.17||$17,719.67||$19,184.00|
|Source||Analyst x8||Analyst x9||Analyst x6||Analyst x3||Analyst x3|
Discounted (@ 8.49%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $19,184 × (1 + 2.47%) ÷ (8.49% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$283,852 = $66,771 + $217,081
Value = Total value / Shares Outstanding ($283,852 / 2,962)Discount to Share Price
Value per share:
Current discount (share price of $104.78): -9.35%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.49% = 2.47% + (0.8 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($310,398,327,807).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.584 = 0.532 (1 + (1- 40%) (16.2%))
Levered Beta used in calculation = 0.8
Mr. C. Douglas McMillon, also known as Doug, has been the Chief Executive Officer and President of Walmart Inc. (formerly known as Wal-Mart Stores, Inc.) since February 1, 2014. Mr. McMillon served as the President and Chief Executive Officer of Wal-Mart International Operations at Walmart Inc. (formerly known as Wal-Mart Stores, Inc.) from February 1, 2009 to January 2014. He served as an Executive Vice President of Walmart Inc. (formerly known as Wal-Mart Stores, Inc.) since August 4, 2005. He served as the Chief Executive Officer of Sam's Club Discount Warehouse Stores Operations from August 4, 2005 to February 1, 2009. He served as the Chief Executive Officer and President of SAM'S West, Inc. from August 4, 2005 to January 2009. He was responsible for the overall corporate strategy and direction of Sam's Club. Mr. McMillon served as an Executive Vice President of Merchandising and Replenishment of Sam's Club of Walmart Inc. (formerly known as Wal-Mart Stores, Inc.) until August 2005. He worked two consecutive summers as an Associate at the Wal-Mart Distribution Centers in Northwest Arkansas. He served as a Buyer Trainee for Wal-Mart working in Store #894 in Tulsa, OK. Mr. McMillon served as a Buyer for Food and Candy, Ladieswear and Crafts, a Divisional Merchandise Manager for Home Furnishings and Infants and Toddlers, Vice President and General Merchandise Manager at Sam’s Club International and Senior Vice President and General Merchandise Manager at Walmart Inc. (formerly known as Wal-Mart Stores, Inc.), where he oversaw purchases for Toys, Electronics, Video Games, Photo, Sporting Goods, Stationary and Office Supplies. He serves as a Director of National Chapter of Students in Free Enterprise (SIFE). He has been a Director of Walmart Inc. (formerly known as Wal-Mart Stores, Inc.) since November 25, 2013. He serves as of Director of US-China Business Council, Inc. He serves on the Executive Board of Director of Center of Retailing Excellence at the University of Arkansas and on the Corporate Board of Advisors for National Council at La Raza. He has been a Director of Walmart Inc. (formerly known as Wal-Mart Stores, Inc.) since November 25, 2013. He served as Director of Massmart Holdings Limited from June 20, 2011 to August 20, 2012. He served as a Director of Wal-Mart de Mexico SAB De CV since 2009. He has been recognized as a Young Global Leader by the World Economic Forum. Mr. McMillon graduated from the University of Arkansas in Fayetteville, with a Bachelor of Science in Business Administration (BSBA) in Accounting. Mr. McMillon received an M.B.A. in Finance from the University of Tulsa.
Average tenure and age of the Walmart management team in years:
Average tenure and age of the Walmart board of directors in years:
Walmart is available at price-to-earnings ratio of 26.24x, showing us it is overvalued based on current earnings compared to the consumer retailing industry average of 22.47x , and overvalued compared to the US market average ratio of 18.79x. … NYSE:WMT PE PEG Gauge Feb 12th 18 We understand WMT seems to be overvalued based on its current earnings, compared to its industry peers. … A PE ratio of 26.24x and expected year-on-year earnings growth of 9.27% give Walmart a quite high PEG ratio of 2.83x.Simply Wall St - – Full article
Check out our latest analysis for Walmart Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) weighs Walmart’s profit against the level of its shareholders’ equity. … ROE can be broken down into three different ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:WMT Last Perf Feb 5th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.Simply Wall St - – Full article
Does Wal-Mart Stores tick all the boxes of a great dividend stock? … See our latest analysis for Wal-Mart Stores 5 questions I ask before picking a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is it the top 25% annual dividend yield payer? … In terms of its peers, Wal-Mart Stores has a yield of 1.93%, which is on the low-side for Consumer Retailing stocks.Next Steps: Taking into account the dividend metrics, Wal-Mart Stores ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers.Simply Wall St - – Full article
Today I will examine Wal-Mart Stores Inc's (NYSE:WMT) latest earnings update (31 October 2017) and compare these figures against its performance over the past couple of years, in addition to how the rest of WMT's industry performed. … Check out our latest analysis for Wal-Mart Stores Despite a decline, did WMT underperform the long-term trend and the industry? … I like to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data.Simply Wall St - – Full article
NYSE:WMT Historical Debt Jan 5th 18 A basic way to evaluate WMT's debt management is to see whether the cash flow generated from the business is at a relatively high level compared to the debt capital invested. … Last year, WMT’s operating cash flow was 0.57x its current debt. … Although WMT’s debt level is towards the higher end of the spectrum, investors shouldn’t panic since its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.Simply Wall St - – Full article
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for WMT Price per share = $97.76 Earnings per share = $3.788 ∴ Price-Earnings Ratio = $97.76 ÷ $3.788 = 25.8x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … Ideally, we want to compare the stock’s P/E ratio to the average of companies that have similar characteristics as WMT, such as size and country of operation. … WMT’s P/E of 25.8x is higher than its industry peers (20.1x), which implies that each dollar of WMT’s earnings is being overvalued by investors.Simply Wall St - – Full article
In the near future, analysts are predicting lower payout ratio of 45.50%, leading to a dividend yield of around 2.21%. … Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. … With these dividend metrics in mind, I definitely rank Wal-Mart Stores as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy.Simply Wall St - – Full article
Check out our latest analysis for Wal-Mart Stores 5 questions to ask before buying a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is it the top 25% annual dividend yield payer? … With Wal-Mart Stores producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a robust dividend generator moving forward. … With these dividend metrics in mind, I definitely rank Wal-Mart Stores as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy.Simply Wall St - – Full article
Analysts covering Wal-Mart Stores Inc (NYSE:WMT) are predicting double-digit earnings per share growth of 26.78% over the following three years. … This indicates a relatively solid earnings per share growth rate of 26.78% over the next few years, which is an optimistic outlook in the near term. … However, WMT’s earnings growth in the past couple of years has been negative at -0.92%.Simply Wall St - – Full article
NYSE:WMT Historical Dividend Yield Nov 15th 17 The Procter & Gamble Company (NYSE:PG) PG has a wholesome dividend yield of 3.13% and the company has a payout ratio of 70.60%. … NYSE:PG Historical Dividend Yield Nov 15th 17 The Coca-Cola Company (NYSE:KO) KO has a solid dividend yield of 3.18% and is distributing 137.39% of earnings as dividends. … NYSE:KO Historical Dividend Yield Nov 15th 17 For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.Simply Wall St - – Full article
Walmart Inc. operates retail stores in various formats worldwide. It operates through three segments: Walmart U.S., Walmart International, and Sam’s Club. The company operates discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, cash and carry stores, home improvement stores, specialty electronics stores, apparel stores, drug stores, convenience stores, and membership-only warehouse clubs; and retail Websites, such as walmart.com and samsclub.com, as well as mobile commerce applications. It offers grocery products, including meat, produce, natural and organics, deli and bakery, dairy, frozen foods, alcoholic and nonalcoholic beverages, floral and dry grocery, as well as consumables, such as health and beauty aids, baby products, household chemicals, paper goods, and pet supplies; and health and wellness products. The company also provides electronics, cameras and supplies, photo processing services, cellular phones, cellular service plan contracts and prepaid service, movies, music, video games, and books; stationery, automotive, hardware and paint, sporting goods, and outdoor living and horticulture, as well as fabrics, crafts, and seasonal merchandise; apparel for women, girls, men, boys, and infants, as well as shoes, jewelry, and accessories; and home furnishings, housewares and small appliances, bedding, home decor, and toys. In addition, it offers fuel and financial services and related products, including money orders, prepaid cards, wire and money transfers, check cashing, and bill payment. Further, the company provides brand name merchandise, including hardgoods, softgoods, and selected private-label items, such as Member’s Mark. It operates 11,593 stores under 63 banners in 28 countries and e-commerce Websites in 11 countries. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is headquartered in Bentonville, Arkansas.
702 SW 8th Street,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NYSE||WMT||Common Shares||New York Stock Exchange||US||USD||03. Apr 1972|
|DB||WMT||Common Shares||Deutsche Boerse AG||DE||EUR||03. Apr 1972|
|XTRA||WMT||Common Shares||XETRA Trading Platform||DE||EUR||03. Apr 1972|
|LSE||0R1W||Common Shares||London Stock Exchange||GB||USD||03. Apr 1972|
|SWX||WMT||Common Shares||SIX Swiss Exchange||CH||CHF||03. Apr 1972|
|WBAG||WMT||Common Shares||Wiener Boerse AG||AT||EUR||03. Apr 1972|
|SNSE||WMT||Common Shares||Santiago Stock Exchange||CL||USD||03. Apr 1972|
|BVC||WMT||Common Shares||Bolsa de Valores de Colombia||CO||COP||03. Apr 1972|
|BMV||WMT *||Common Shares||Bolsa Mexicana de Valores||MX||MXN||03. Apr 1972|
|BVL||WMT||Common Shares||Bolsa de Valores de Lima||PE||USD||03. Apr 1972|
|BOVESPA||WALM34||BDR REPR 1/4 COM STK NPV||Bolsa de Valores de Sao Paulo||BR||BRL||28. Dec 2011|
|BASE||WMT||CEDEARS 3 REP 1 COM USD0.10||Buenos Aires Stock Exchange||AR||ARS||19. Jul 2001|
|Hypermarkets and Super Centers|
|Company Analysis updated:||2018/02/18|
|Last estimates confirmation:||2018/02/16|
|Last earnings update:||2017/10/31|
|Last annual earnings update:||2017/01/31|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.