The company i choose is Walmart
Absolute Valuation Method: DDM
Relative Valuation Method: PEBD
Choose any company and prepare a valuation report with a rating: Buy, Sell or Hold using at least 2 different methods: 1-Absolute Valuation Method: Bloomberg's DDM, Perpetuity Growth, EBITDA Multiple or any additional valuation method you find useful. You can also look at the Bloomberg case study on Blackboard for additional ideas. 2-Relative Valuation Method: PEBD, RV, and/or EQRV models: Scenario: you are an analyst presenting your recommendation (is your stock undervalued or overvalued) and the rationale behind it. Clearly show your calculations to back your opinion (rating). Why is this stock under or overvalued? WMT US $ alAt 9:46 d Vol 308,095 WMT US Equity T 118.70 -0.43 N118.69/118.71P H 119.28P L 118.68K Val 36.644M 1x3 0 118.83N Dividend Discount Model Walmart Inc Model Assumptions Risk Premium Country United States 1.765% Earnings Per Share FY1 Earnings Per Share FY Earnings Per Share FYS Dividends Per Share FY1 Growth Years Transitional Years 4.997 5.211 Bond Rate Country Premium Beta 1DRisk Premium Payout during Growth yrs Payout at Maturity Growth Rate at Maturity 6.763 5.531 O.773 2.148 5.227 9.000 42.986 45.000% 3.846% 8.000 Long Term Growth Rate Closing Price 5.480 118.700 USD Currency Computed Values Theoretical Price Percentage Change from Clo... Internal Rate of Return Expected Return Implied Growth Rate 83.639 -29.537% 6.094% -11.882 % 9.260% Openwith Dece- WMT US Equity Export Settings BICS Best Fit (Algo) Equity Relative Valuation Regis Mkt Cap> Vs Comps Group Dynamics Curr USD Price Bands vs Self Valuation Metric Bands 3M 6M 1Yr 2Yr SYr 1r Metric 12M Fwd Implied Price Avg 18.91 118.77 Current 2Yr Avg Band (x) Avg+x Avg-x Current O LTM P/E LTM P/BV LTM P/CE LTM P/S Est (USD) 2Yr Avg 118,91 108.95 10.64 Avg-x 118.91 99.12 96.73 21.1x 4.0x 10.5x 23.9x 1.9 23.0x S.17 27.82 9.31 189.58 19.2x 4.7x 0.5 4.5x 3.5x 124.55 13.7x 1.2 11.7x 9.3 97.86 108.63 109.03 86.69 O.7x O.6x O.1 0.7x O.5x 127.59 89.67 Price Bands Based On LTM P/E Chart Table Px- 118.91 (Actual) P/E of 23.9x Px 123.63 P/E of 24.9x Px-114.19 P/E of 23x Px 104.75 @ P/E of 21.1x Px-95.3P/E o 19.2x Px-85.86 @P 7 GP Chart securities & technical studies 2017 DRSK Assess a company's risk health Suggested Functions n Choose any company and prepare a valuation report with a rating: Buy, Sell or Hold using at least 2 different methods: 1-Absolute Valuation Method: Bloomberg's DDM, Perpetuity Growth, EBITDA Multiple or any additional valuation method you find useful. You can also look at the Bloomberg case study on Blackboard for additional ideas. 2-Relative Valuation Method: PEBD, RV, and/or EQRV models: Scenario: you are an analyst presenting your recommendation (is your stock undervalued or overvalued) and the rationale behind it. Clearly show your calculations to back your opinion (rating). Why is this stock under or overvalued? WMT US $ alAt 9:46 d Vol 308,095 WMT US Equity T 118.70 -0.43 N118.69/118.71P H 119.28P L 118.68K Val 36.644M 1x3 0 118.83N Dividend Discount Model Walmart Inc Model Assumptions Risk Premium Country United States 1.765% Earnings Per Share FY1 Earnings Per Share FY Earnings Per Share FYS Dividends Per Share FY1 Growth Years Transitional Years 4.997 5.211 Bond Rate Country Premium Beta 1DRisk Premium Payout during Growth yrs Payout at Maturity Growth Rate at Maturity 6.763 5.531 O.773 2.148 5.227 9.000 42.986 45.000% 3.846% 8.000 Long Term Growth Rate Closing Price 5.480 118.700 USD Currency Computed Values Theoretical Price Percentage Change from Clo... Internal Rate of Return Expected Return Implied Growth Rate 83.639 -29.537% 6.094% -11.882 % 9.260% Openwith Dece- WMT US Equity Export Settings BICS Best Fit (Algo) Equity Relative Valuation Regis Mkt Cap> Vs Comps Group Dynamics Curr USD Price Bands vs Self Valuation Metric Bands 3M 6M 1Yr 2Yr SYr 1r Metric 12M Fwd Implied Price Avg 18.91 118.77 Current 2Yr Avg Band (x) Avg+x Avg-x Current O LTM P/E LTM P/BV LTM P/CE LTM P/S Est (USD) 2Yr Avg 118,91 108.95 10.64 Avg-x 118.91 99.12 96.73 21.1x 4.0x 10.5x 23.9x 1.9 23.0x S.17 27.82 9.31 189.58 19.2x 4.7x 0.5 4.5x 3.5x 124.55 13.7x 1.2 11.7x 9.3 97.86 108.63 109.03 86.69 O.7x O.6x O.1 0.7x O.5x 127.59 89.67 Price Bands Based On LTM P/E Chart Table Px- 118.91 (Actual) P/E of 23.9x Px 123.63 P/E of 24.9x Px-114.19 P/E of 23x Px 104.75 @ P/E of 21.1x Px-95.3P/E o 19.2x Px-85.86 @P 7 GP Chart securities & technical studies 2017 DRSK Assess a company's risk health Suggested Functions n
