Wal-Mart Stores, Inc. (WMT)
Discount cash flow analysis
Price history
Sensitivity matrix
|
-1% |
Discount Rate % 0% |
1% |
||
|---|---|---|---|---|
| -1% | $78.19 | $76.46 | $74.79 | |
| Terminal Growth% | 0 | $79.09 | $77.32 | $75.62 |
| +1% | $79.09 | $77.32 | $75.62 |
How does a change in discount rate or terminal growth affect valuation?
This table shows the sensitivity of the valuation to two key variables - the discount rate and the terminal growth rate
Valuations and comments
- Valuecruncher created a new valuation of $62.99 (overvalued by 12.74%) - 12 months ago
- GeraldRoberson created a new valuation of $53.31 (overvalued by 1.82%) - over 6 years ago
- ssoules created a new valuation of $142.71 (undervalued by 178.73%) - 7 years ago
- hafizalshaban created a new valuation of $33.19 (overvalued by 38.66%) - over 7 years ago
- hafizalshaban created a new valuation of $33.19 (overvalued by 38.66%) - over 7 years ago
- GordonGekko created a new valuation of $51.50 (overvalued by 2.72%) - over 7 years ago
- michaeljk2 created a new valuation of $50.99 (undervalued by 2.64%) - almost 8 years ago
- michaeljk2 created a new valuation of $77.32 (undervalued by 55.64%) - almost 8 years ago
- michaeljk2 created a new valuation of $194.44 (undervalued by 291.38%) - almost 8 years ago
- michaeljk2 created a new valuation of $138.21 (undervalued by 178.2%) - almost 8 years ago
- jcook62 created a new valuation of $79.21 (undervalued by 61.39%) - almost 8 years ago
- germas88 created a new valuation of $55.01 (undervalued by 13.4%) - over 8 years ago
- SethWellbourne created a new valuation of $43.60 (overvalued by 15.77%) - over 8 years ago
- dweis created a new valuation of $39.90 (overvalued by 24.32%) - almost 9 years ago
- TheCrunchBlog created a new valuation of $54.88 (overvalued by 6.75%) - almost 9 years ago
- Diegoengel created a new valuation of $51.57 (overvalued by 10.23%) - 9 years ago
- GordonGekko created a new valuation of $59.35 (undervalued by 5.6%) - over 9 years ago
- TheCrunchBlog created a new valuation of $51.71 (overvalued by 7.99%) - over 9 years ago
Comments
The boring details
| All amounts in millions | Figures |
| Enterprise Value: | 313,367 |
| Net Debt (Long-term borrowings less cash): | 34,943 |
| Equity Value: | 191,607 |
| Number of Shares Outstanding: | 3,856,000,000 |
| Calculated value per share: | $77.32 |
Enterprise Value is the present value of the post-tax cash flows for a business into the future.
Where:
- C1, C2, C3 - the cash flow in period 1, 2, 3, ...
- r - the discount rate
To capture the cash flows into the future a terminal value is calculated via a perpetuity calculation -
based on the final years forecast post-tax free cash flow.
Where:
- Cn - the cash flow in the final forecast period.
- LTG - the long-term growth rate
- r - the discount rate
- g - the terminal growth rate
The Capital Asset Pricing Model (CAPM) is used to determine the equity component in the discount rate.
Where:
- rt - the risk free rate
- t - the tax rate
- B - the beta of the company
- MRP - the Market Risk Premium
Valuecruncher uses an estimate of Weighted Average Cost of Capital (WACC) to determine the discount rate in the calculation.