Case ID: 9B11N004     Solution ID: 19146     Words: 1389 Price $ 75

Valuing Wal Mart 2010 Case Solution

Case Solution

An equity evaluator uses a number of different procedures for the valuation of Wal-Mart stock, with the aim of giving a buy/sell or hold suggestion for the shares.

Excel Calculations

Income Statement

Balance Sheet

Cash Flow Statement

Earnings and Dividends

Price of Stock

Constant Dividend Growth Model

Dividend and Terminal Value

Price Earning Multiple Approach

CAPM Model

Three Stage Approach

Questions Covered

1. As of February 2010, what is your assessment of the worth of Wal-Mart's stock? Utilize all of the methods discussed in the case of value shares, including the following:

a) The perpetual growth in dividends.

b) Forecasted dividends for the next several years plus sale of the stock in the future. c) The price/earnings approach.

2. Clearly state any assumptions.

3. Based on your analysis, as Sabrina Gupta, what recommendation would you make?