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Given the following information for Walmart and Target Corporation: Expected growth Expected ROE Expected profit margin Potential payout ratio Beta 10-year Treasury Rate Expected
Given the following information for Walmart and Target Corporation: Expected growth Expected ROE Expected profit margin Potential payout ratio Beta 10-year Treasury Rate Expected Return on the Market Calculate for both companies: 1. Forward Price to Earnings Multiple 2. Trailing Price to Book Multiple 3. Forward Price to Sales Multiple WMT 5.30% 16.70% 3.10% 45.30% 0.577 2.14% 9.57% 4. Given the following actual multiples: Actual Multiples WMT Forward P/E Trailing P/B Forward P/S TGT Forward P/E Trailing P/B Forward P/S 21.30 4.80 0.70 18.50 7.60 1.00 TGT 7.00% 50.90% 6.20% 22.30% 0.760 2.14% 9.57% Do Walmart and Target Corporation seem correctly/over/undervalued?
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To evaluate whether Walmart WMT and Target Corporation TGT are correctlyoverundervalued well calculate the forward price to earnings multiple trailing price to book multiple and forward price to sales ...Get Instant Access to Expert-Tailored Solutions
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