Equity Valuation of WalMart

2456 Words5 Pages
bulb-icon

Recommended: Walmarts strategic effectiveness

EQUITY VALUATION – WALMART

Equity valuation is a major tool used to analyse investment choices using the company’s past and current performance, in addition to its business plans, in order to forecast its future financial position and valuate the stock. This paper will examine and valuate Walmart based on my projection for the company’s performance over the next few years.

SECTION I

Wal-Mart Stores, Inc., branded as Walmart and traded on the NYSE as WME, is a multinational retail corporation headquartered in Bentonville, Arkansas (United States). The company, which is currently the world’s largest corporation by consolidated revenue and the world’s biggest employer, runs chains of large discount stores and warehouse stores in the US and in 26 other countries. The company was founded in 1962 by Sam Walton and still remains as a family-owned business. As of June 2013, the Walton family owned at least 50.9% of outstanding shares, up from 39% a decade ago.

Walmart is a retailer that belongs to the consumer staples sector and is currently the leader in the US retail market, accounting for 11.3% of all US sales. The company operates largely in three segments: Walmart USA, which accounted for 58.89% of the company’s sales revenue in 2013, Walmart International, which accounted for 29.01% of the sales revenue, and Sam’s Club, accounting for 12.10% of the total. The company operates in twenty six foreign countries through Walmart International, and Sam’s Club operates as a membership-based discount wholesaler in the US. In total, the company currently has around 11,000 retail units under 69 different banners in 27 countries and also has online stores in 10 countries.

Walmart USA’s strategy centres around its Everyday Low ...

... middle of paper ...

...Feet, 2008. Beat the Street: Investment Banking Interviews, 2008 Edition, WetFeet, Chapter 3

Coleman-Lochner, A., Rupp, L., Patton, L., December 1st, 2013. U.S. Retail Holiday Sales Up 2.3%, Foot Traffic Declines. Reuters. [Online]: http://www.bloomberg.com/news/2013-11-30/black-friday-traffic-seen-thinning-as-stores-open-early.html

Chowdhury, S., January 07, 2014. Market price-earnings ratio at three-year high, The Daily Star. [Online]: http://www.thedailystar.net/business/market-price-earnings-ratio-at-three-year-high-5714

Annual Reports 2004. [Online]

Annual Report 2005. [Online]

Annual Report 2006. [Online]

Annual Report 2007. [Online]

Annual Report 2008. [Online]

Annual Report 2009. [Online]

Annual Report 2010. [Online]

Annual Report 2011. [Online]

Annual Report 2012. [Online]

Annual Report 2013. [Online]

Annual Report 2014. [Online]

Show More
Related

  • Is Wal-Mart Bad For America?

    1169 Words  | 3 Pages

    Wal-Mart was conceived and founded by Sam Walton in 1962, at Rogers, Arkansas. Sam Walton started with just a few small variety stores, funded with borrowed money. His goal was to provide affordable products to the public to make life easier. After his success with the first few stores, Sam Walton borrowed more money to build more stores, creating the Wal-Mart empire as we see it today. The retail giant proves its stoic presence in our lives with its $401 billion sales for fiscal year 2009.

    Read More

  • Wal-Mart is Bad For America

    841 Words  | 2 Pages

    "Wal-Mart Stores, Inc. is the world's largest retailer, with $285.2 billion in sales in the fiscal year ending Jan. 31, 2005. The company employs 1.6 million associates worldwide through more than 3,700 facilities in the United States and more than 2,400 units in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, South Korea, and the United Kingdom. More than 138 million customers per week visit Wal-Mart stores worldwide." (Walmartfacts.com)

    Read More

  • Walmart Vs Target

    1155 Words  | 3 Pages

    Wal-Mart Stores, Inc. operates retail stores in various formats around the world. Wal-Mart is committed to growing by improving the standard of living for our customers throughout the world. Wal-Mart earns the trust of its customers every day by providing a broad assortment of quality merchandise and services at every day low prices while fostering a culture that rewards and embraces mutual respect, integrity, and diversity. In 2006 the net sales were $312.4 billion versus in 2005 were $285 billion.

    Read More

  • Apple Inc Stock Analysis

    391 Words  | 1 Pages

    The stock price is currently 103.31, down from a recent high of 121.50. The P/E ratio is declining at 28 and beta at .67, which is expected to grow closer to 1.0. A recent earnings surprise last December yielded a 15% difference from the lower expectations and the latest earnings reports late last month also surprised investors. Estimates for the 2000 fiscal year are being raised by a large majority of analyst who believe that earnings per share will increase and the stock price will reach close to 150.

    Read More

  • Acquiring Target Corporation

    1295 Words  | 3 Pages

    Target Corporation. (2011, March 11). Target 2010 Annual Report. Retrieved March 9, 2012, from http://investors.target.com

    Read More

  • Walmart Financial Analysis

    977 Words  | 2 Pages

    The top two reasons for such success in ranking first in retail store market, is because Wal-Mart is convenient globally and so are there prices in the competitive market . Wal-Mart has three segments which are superstores, discount stores, and Sam's Club stores, all of these are scattered in the United States, Canada, Mexico, Europe, Brazil, and Asia. One downfall was from Sam's club because too many were opening all over internationally it decreased the number of customers per location. Overall despite the company's decline on Sam's club sales, the Corporations did well over all with the figures brought in and conditions.

    Read More

  • Walmart's Bureaucratic Structure

    2065 Words  | 5 Pages

    Walmart a name known globally they are a true empire. They are known as one of the largest company in the world. Sam Walton founded Walmart opening the first store in 1952 and Arkansas since then in has grown. According to Snyder Walmart is located in over 27 counties they have over a 11,000 stores and over two million employees. Walmart stands by the mission statement “We save people money so they can live better.” Walmart is known for is super low prices, and they compete with anyone who tries to enter their market. Walmart has a very formal and bureaucratic structure. There is a very clear hierarchy and commands come from the top and flows to the bottom. Although Walmart is so successful they have received lots of backlash due to some

    Read More

  • Data Analysis Of Wal-Mart Stores Inc.

    1853 Words  | 4 Pages

    Wal-Mart initially began its operations in 1945, when Sam Walton leased a ‘Ben Franklin’ franchise variety store in Newport, Arkansas. After relocating to Rogers, Arkansas in the early 1950s, Sam Walton’s ‘Ben Franklin’ became ‘Walton’s 5 & 10’. By 1962, Walton found himself the chain owner of 11 different Walton’s stores across Arkansas. He then decided to rename the chain ‘Wal-Mart’, after himself. On October 31, 1969, after further expansion across the state, the chain was incorporated as Wal-Mart Stores, Inc. Three years later, Wal-Mart was approved and listed on the New York Stock Exchange (NYSE).

    Read More

  • The Marketing Environment: Wal-Mart Corporation

    1488 Words  | 3 Pages

    Wal-Mart is the world's largest retailer and second largest corporation. It is the largest private employer in the United States and Mexico. Wal-Mart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business, and the largest toy seller in the United States, with an estimated 45% of the retail toy business, having surpassed Toys"R" Us in the late 1990s. Wal-Mart has 1,929 stores which as of 2005 sales figures totaled about $155,477,000,000 in sales. Wal-Marts revenue as of 2006 was an estimated $315,654 billion USD, net income $11.231billion USD, and employs more than 1.8 million employees.1

    Read More

  • Wal Mart and Target Case Study

    1124 Words  | 3 Pages

    Wal-Mart was established in 1962 by Sam Walton. The first Wal-Mart store was built in Rogers, Arkansas. Wal-Mart's were gradually put up around the United States and then moving to other countries such as Japan.

    Read More

  • Strategic Management of Wal-Mart

    1002 Words  | 3 Pages

    Wal-Mart Stores Inc. is in the discount, variety stores industry. It was founded in 1945, Bentonville in Arkansas which is also the headquarters of Wal-Mart. Wal-Mart operates locally as well as worldwide. It operated 1209 discount stores, 1980 super centers, and 567 Sam’s Club by January 31, 2006. It has also extended its operations to many international countries. It runs its retail stores in two forms: Sam’s Club and Wal-Mart Stores. The Sam’s Club sells assorted product lines such as hardwares, electronics, jewelry, and to mention a few. The Wal-Mart stores also offer similar products in addition to the following: health and beauty products, apparel for women, men and children, household appliances etc (www.yahoo.finance.com). The Vision Statement, Mission Statement, Values and Code of Conduct, Corporate Governance: Directors, Executive Management, Committees and Stakeholder will be the key elements that will discussed in this report as it relates to Wal-Mart. In addition to that, the major trends in the general/macro environment and industry will be analyzed.

    Read More

  • Wal-Mart Dominating Global Retail

    1496 Words  | 3 Pages

    The Wal-mart is the largest retail chain in United States and in the world. The wal-mart was founded in the year 1962 by Mr Sam Walton. It was originally named as Wal-Mart discount city in Rogers, Arkansas. At the time when the Wal-Mart stores started in the year 1962 it was focused only in small rural cites and town which had a population of 5000 to 25000. It was soon increased to 18 stores in 1969. In the next 30 years it had more than 4750 stores across 50 states in USA and 9 countries with $245 billion sales. It started its international operations in Mexico in the year 1991 and then it expanded it to different countries across Europe and Asia.

    Read More

  • Walmart And Amazon Case Study

    721 Words  | 2 Pages

    Walmart operations comprise three business segments, namely: Walmart U.S., International and Sam’s Club. The Walmart U.S.

    Read More

  • Operational Planning For Wal-Mart

    1617 Words  | 4 Pages

    The first Wal-Mart was opened in Rogers, Arkansas, in 1962. By 1969 it was incorporated into Wal-Mart Stores, Inc., and in 1972 went public on the New York Stock Exchange. The company grew steadily across the United States, and by 1990 was the nation's largest retailer. In 1991 and 1994, Wal-Mart moved into Mexico and Canada respectively. By 1997 it was incorporated into the Dow Jones Industrial Average. As of 2005, Wal-Mart has stores in the United Kingdom, and Puerto Rico, and brings in revenue of close to 300 billion dollars a year. In 2006, Wal-Mart invaded the China and India's markets. During the last two decades, Wal-Mart has been able to take advantage of the rise of information technology and the explosion of the global economy to change the balance of power in the business world (Wikipedia, 2006). Today Wal-Mart continues to grow and their success is not only from their sound strategic management planning but also from its implementation of those strategic plans. In other words operational planning has been an important key to their success.

    Read More

  • Walmart Case Study

    653 Words  | 2 Pages

    Walmart serves about 14 million customers each day. When Sam Walton founded Walmart in 1962 I’m sure he didn’t expect it to become as big of a retail store as it is now. 42 years after being founded, Walmart now has 4,253 stores across the world, and brings in $405 billion dollars a year. This kind of success doesn’t just happen overnight.

    Read More

More about Equity Valuation of WalMart

Open Document