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How does this work?
A valuation is an assessment of the value of one share in a company, it is not necessarily the same as the price listed in the sharemarket. You can use a variety of methods to value a company, Valuecruncher uses Discounted Cash Flow (DCF) analysis to help people create the valuations you see below.
Valuecruncher Valuation
23.41%
from latest share price
Your Valuation
| Valuation | Compared to price | Member |
 Created
|
Views |
|---|---|---|---|---|
| $65.31 |
23.41%
|
Valuecruncher | 23 Nov 2008 | 0 |
| $39.90 |
 -24.32%
|
dweis | 19 Nov 2008 | 3 |
| $54.88 |
-6.75%
|
TheCrunchBlog | 03 Oct 2008 | 127 |
| $51.57 |
-10.23%
|
Diegoengel | 30 Jul 2008 | 21 |
| $59.35 |
5.6%
|
GordonGekko | 16 Jul 2008 | 31 |
| $51.71 |
-7.99%
|
TheCrunchBlog | 14 Jul 2008 | 179 |
Price History
Recent Comments
| Updated: | 5 hours ago |
| Ticker: | WMT |
| Market: | NYSE |
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/10/running-the-numbers-wal-mart-wmt-looks-expensive/
Our assumptions are revenues of US$408.0 billion in 2008 growing to US$470.0 billion in 2010. We have used a flat EBITDA margin of 7.5% to 2010. Our terminal growth rate is 3.5%. We used a terminal capital expenditure number of US$14.5 billion. Our WACC (discount rate) is 8.0%. All of these assumptions can be amended in the Valuecruncher on-line valuation model to adjust the valuation. Our analysis incorporates the cash and debt on the $WMT balance sheet – Valuecruncher calculates a net debt number.
Our valuation is sensitive to the discount rate assumption. If we drop the discount rate to 7.5% then the valuation rises to US$62.84 6.78% above the current share price of US$58.85.
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/07/a-dcf-valuation-of-wal-mart-wmt/
Wal-Mart grew revenues from US$284.3 billion in 2005 to US$378.8 billion in 2008 – a 10% compound annual growth rate. Our assumptions of revenues for the next three years are US$405.0 billion in 2009 growing to US$465.0 billion in 2011 – a 7% compound annual growth rate. We have projected EBITDA margins to be flat at 7.5%. We have used a terminal growth rate of 3.5%. We calculated this terminal growth rate based on year three growth of 6.9% dropping to a 3% stable growth rate by year 10. We used a terminal capital expenditure number of US$14.5 billion. We have used a WACC (discount rate) of 8%.