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Your Valuation
10 June 2008 |
126
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Valuation Details
| Member: | TheCrunchBlog |
| On: | 03 Oct 2008 |
| Views: | 126 |
| Comments: | 1 |
| Updated: | 3 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.