Estimating Share Value Using the ROPI Model Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA)

as of January 31, 2016, for Walmart Stores Inc.

$ millions Reported 2016 Horizon Period Terminal 2017 2018 2019 2020 Period Sales. . . . . . . . . . . . . . . . . $482,130 $486,951 $491,821 $496,739 $501,706 $506,723 NOPAT . . . . . . . . . . . . . . . 16,634 17,043 17,214 17,386 17,560 17,735 NOA . . . . . . . . . . . . . . . . . 124,940 126,186 127,448 128,722 130,009 131,309

a. Estimate the value of a share of Walmart common stock using the residual operating income (ROPI)

model as of January 31, 2016.

b. Walmart (WMT) stock closed at $68.80 on March 30, 2016, the date the 10-K was filed with the SEC.

How does your valuation estimate compare with this closing price? What do you believe are some reasons for the difference?