Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi I need help with my Detailed Stock Valuation Project the stock I need to work on is Walmart normally there is a spreadsheet that

Hi I need help with my Detailed Stock Valuation Project the stock I need to work on is Walmart normally there is a spreadsheet that I need to fill up but didn't know how to upload the spreadsheet here so I'm just putting the questions.

Detailed Stock Valuation Project

Profitability and Growth

Load your companys 10 years of historical data into spreadsheet.

Analyze the companys historical revenue growth and profit margin. Identify 3 main competitors and see they compare to your company in these two measures. Make a forecast for your companys revenue growth and profit margin out into the future.

Operating Capital

Analyze the components of your companys operating working capital and long term operating capital relative to revenues on a historic basis. Also look at the same measures for your 3 main competitors. Make a forecast for your companys operating and long term working capital.

Detail and support the calculation of your companys weighted average cost of capital.

Valuation

Calculate the companys historic return on invested capital and your forecast for it out into the future. Compare to the historic return on invested capital for your 3 main competitors.

Valuation Sensitivity

Show the sensitivity of your valuation to key assumptions:

  1. Next few years and intermediate term revenue growth
  2. Profit margins
  3. Operating Capital as a percent of revenues
  4. Weighted Average Cost of Capital
  5. Long Term Return on Invested Capital
  6. Growth Rate at Maturity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance

Authors: Angelico Groppelli, Ehsan Nikbakht

2nd Edition

0812043731, 978-0812043730

More Books

Students also viewed these Finance questions