- (12 points) Apply what you learned in Chapter 3 (Ratio Analysis) and BMCs Equity Module to the real-world data of Walmart (WMT) and Target (TGT) and find which company has a higher PE ratio as of the end of the trading day of December 4th.
- Trailing PE ratio (P0/E0)
Answer: _____________ has a higher trailing PE ratio as shown below.
Show your answer, data, and calculations by filling in the blanks.
Use the Investor Relations website of each company to find the closing stock price and the most recent income statement in the 10-K annual report.
| Data as of 12/04/20 | WMT | TGT |
| P0 (Closing stock price at 4:00 PM) | | |
| Net income in the most recent income statement | | |
| Number of shares outstanding in the 10-K | | |
| E0 (Historical earnings per share) | | |
| P0/E0 | | |
- Forward PE ratio (P0/E1)
Answer: _____________ has a higher forward PE ratio as shown below.
Show your answer, data, and calculations by filling in the blanks.
Use the Bloomberg data posted on Blackboard to find the analysts estimate of each companys 2020 earnings per share (E1).
| Data as of 12/04/20 | WMT | TGT |
| P0 (Closing stock price at 4 PM) | | |
| E1 (Forecasted 2020 Earnings per share) | | |
| P0/E1 | | |
Y210S, A Emas 5.00 Price 160 WALMART INC Equity - EE Related Functions Menu Message *C. ? Click values in the grid for more information Put Bloomberg's Earnings Tools to Work | New Videos WMT US Equity Alert Walmart Inc Periodicity Annuals Source Best Mean Consensus (Standard) Cur USD Earnings & Estimates D Earnings History | ERN >> 2) Consensus Overview | EEO 3) Analyst Coverage | ANR >> Next Announcement (C) 02/18/21 Trailing 12M P/E 27.80 Buy/Hold/Sell 27/9/2 Prior Announcement 11/17/20 Forward 12M P/E 26.74 Current Price 149.37 Avg/Implied 1 Day Move 3.30% / 4.33% Est. LTG (EPS) 6.10% Target Price 159.47 4 Consensus Overview | EEO >> 20 Current Period Overview (Yr/21) 22 Prior Period Analysis (Yr (20) Measure Yr/21 Est 4Wk Chg YOY Gr Growth vs Comps Past Surprise 11 EPS, Adj+ 5.585 4.899 13.1% In-line Beat 6 of 8 12 EPS, GAAP 6.450 8.65% 24.3% Stronger Missed 5 of 8 13) Revenue 554.671B 0.81% 5.9% Weaker Missed 5 of 8 14 Net Income, Adj+ 15.942B 5.50% 12.2% In-line Beat 5 of 8 15) Operating Profit 23.600B 3.67% ---- 16 EBITDA 34.855B 2.61% 7.4% In-line Missed 6 of 8 5) Earnings Trends | EM >> 6 Bloomberg Intelligence Review | BI >> 7) Earnings Estimates Graph EEG >> 7.00 Guidance EPS, A Walmart Momentum May Hold With Solid Eine EPS, Ad 6.00 Holiday: Earnings Outlook Acal EPS, Ad 5.60 5.00 Post-30 Earnings Outlook: Walmart is 140 4,00 improving its in-stock position and 3.00 anticipates a strong fiscal 49 sales 2.00 season as consumers seek some normalcy in holiday celebrations. Gross margin has trended higher in recent 3403 Lund 100 100 6.00 1.00 30 2006 2010 200 2016 2009 2021 2033 21 TARGET CORP Equity EE Related Functions Menu Message ? Screen Printed TGT US Equity Alert Target Corp Periodicity Annuals Source Best Mean Consensus (Standard) Cur USD Put Bloomberg's Earnings Tools to Work | New Videos Earnings & Estimates 1 Earnings History | ERN >> Next Announcement Prior Announcement Avg/Implied 1 Day Move 4) Consensus Overview EEO >> Measure 11 EPS, Adj+ 12 EPS, GAAP 13) Revenue 14 Net Income, Adj+ 15) Operating Profit 16) EBITDA 2) Consensus Overview | EEO 3) Analyst Coverage | ANR >> TBA Trailing 12M P/E 19.38 11/18/20 Buy/Hold/Sell 20/8/2 Forward 12M P/E 22.02 Current Price 163.04 4.61% / 5.97% Est. LTG (EPS) 8.72% Target Price 167.12 1121 Current Period Overview (Yr/21) 22 Prior Period Analysis (Yr/20) Yr/21 Est 4Wk Chg YOY Gr Growth vs Comps Past Surprise 7.403 2.05% 15.6% In-line Missed 5 of 8 7.418 2.208 17.0% Weaker Beat 4 of 8 87.574B 0.29% 14.13 Stronger Beat 4 of 8 3.704B 1.988 12.49 In-line Beat 5 of 8 5.178B 1.58% ---- 7.723B 1.329 5.7% Weaker Beat 5 of 8 S) Earnings Trends | EM >> Guidance EPS, A Estimate EDS, A Achal PS, A 850 0.00 3.00 7.00 0.00 5.00 4.00 6 Earnings Estimates Graph | EEG >> 223 HT, Mina n. 20 Price 2 260 140 160 200 200 5.50 s. 430 1.00 2008 2003 2010 2003 2002 2009 2018 201 200 MODL Get analyst models & deep estimates Suggested Functions BRC Research Portal: Single Security S18 AM Y210S, A Emas 5.00 Price 160 WALMART INC Equity - EE Related Functions Menu Message *C. ? Click values in the grid for more information Put Bloomberg's Earnings Tools to Work | New Videos WMT US Equity Alert Walmart Inc Periodicity Annuals Source Best Mean Consensus (Standard) Cur USD Earnings & Estimates D Earnings History | ERN >> 2) Consensus Overview | EEO 3) Analyst Coverage | ANR >> Next Announcement (C) 02/18/21 Trailing 12M P/E 27.80 Buy/Hold/Sell 27/9/2 Prior Announcement 11/17/20 Forward 12M P/E 26.74 Current Price 149.37 Avg/Implied 1 Day Move 3.30% / 4.33% Est. LTG (EPS) 6.10% Target Price 159.47 4 Consensus Overview | EEO >> 20 Current Period Overview (Yr/21) 22 Prior Period Analysis (Yr (20) Measure Yr/21 Est 4Wk Chg YOY Gr Growth vs Comps Past Surprise 11 EPS, Adj+ 5.585 4.899 13.1% In-line Beat 6 of 8 12 EPS, GAAP 6.450 8.65% 24.3% Stronger Missed 5 of 8 13) Revenue 554.671B 0.81% 5.9% Weaker Missed 5 of 8 14 Net Income, Adj+ 15.942B 5.50% 12.2% In-line Beat 5 of 8 15) Operating Profit 23.600B 3.67% ---- 16 EBITDA 34.855B 2.61% 7.4% In-line Missed 6 of 8 5) Earnings Trends | EM >> 6 Bloomberg Intelligence Review | BI >> 7) Earnings Estimates Graph EEG >> 7.00 Guidance EPS, A Walmart Momentum May Hold With Solid Eine EPS, Ad 6.00 Holiday: Earnings Outlook Acal EPS, Ad 5.60 5.00 Post-30 Earnings Outlook: Walmart is 140 4,00 improving its in-stock position and 3.00 anticipates a strong fiscal 49 sales 2.00 season as consumers seek some normalcy in holiday celebrations. Gross margin has trended higher in recent 3403 Lund 100 100 6.00 1.00 30 2006 2010 200 2016 2009 2021 2033 21 TARGET CORP Equity EE Related Functions Menu Message ? Screen Printed TGT US Equity Alert Target Corp Periodicity Annuals Source Best Mean Consensus (Standard) Cur USD Put Bloomberg's Earnings Tools to Work | New Videos Earnings & Estimates 1 Earnings History | ERN >> Next Announcement Prior Announcement Avg/Implied 1 Day Move 4) Consensus Overview EEO >> Measure 11 EPS, Adj+ 12 EPS, GAAP 13) Revenue 14 Net Income, Adj+ 15) Operating Profit 16) EBITDA 2) Consensus Overview | EEO 3) Analyst Coverage | ANR >> TBA Trailing 12M P/E 19.38 11/18/20 Buy/Hold/Sell 20/8/2 Forward 12M P/E 22.02 Current Price 163.04 4.61% / 5.97% Est. LTG (EPS) 8.72% Target Price 167.12 1121 Current Period Overview (Yr/21) 22 Prior Period Analysis (Yr/20) Yr/21 Est 4Wk Chg YOY Gr Growth vs Comps Past Surprise 7.403 2.05% 15.6% In-line Missed 5 of 8 7.418 2.208 17.0% Weaker Beat 4 of 8 87.574B 0.29% 14.13 Stronger Beat 4 of 8 3.704B 1.988 12.49 In-line Beat 5 of 8 5.178B 1.58% ---- 7.723B 1.329 5.7% Weaker Beat 5 of 8 S) Earnings Trends | EM >> Guidance EPS, A Estimate EDS, A Achal PS, A 850 0.00 3.00 7.00 0.00 5.00 4.00 6 Earnings Estimates Graph | EEG >> 223 HT, Mina n. 20 Price 2 260 140 160 200 200 5.50 s. 430 1.00 2008 2003 2010 2003 2002 2009 2018 201 200 MODL Get analyst models & deep estimates Suggested Functions BRC Research Portal: Single Security S18 AM
