The story behind your analysis of your forecast of the future based on your spreadsheet. Why did you choose the specific growth rates? What impact did they have on the value of Walmart? Use the Walmart Proforma Income Excel spreadsheet

  
 
 

Walmart --- Pro Forma Income Statements ($ in millions) M&A - Current Value Estimate - 2019 Actual Terminal Value Year Fiscal Year 2019 2020 2021 2022 2023 2024 Year 5 Sales $514,405 $524,693 $535,187 $545,891 $556,809 $567,945 Growth Rate 2.00% Variable Costs 75.00% $385,301 $393,520 $401,390 $409,418 $417,606 $425,959 Gross Profit $129,104 $131,173 $133,797 $136,473 $139,202 $141,986 Fixed Costs - SG&A $96,469 $98,398 $100,366 $102,374 $104,421 $106,510 2.00% Other Income ($4,800) Depreciation $10,678 $10,892 $11,109 $11,332 $11,558 $11,789 2.00% $17,157 $21,883 $22,321 $22,767 $23,223 $23,687 Taxes 23.00% $4,790 $5,033 $5,134 $5,237 $5,341 $5.448 Net Income $12,367 $16,850 $17,187 $17,531 $17,882 $18,239 EPS - Before Interest Exp. $4.19 $5.71 $5.83 $5.94 $6.06 $6.18 Cash Flows Operating Cash Flow $27,742 $28,297 $28,862 $29,440 $30,029 Residual Value (OFFER) $364,783.27 PE Mulitple 20 assumed Capital Spending Cash Flow $0 $27,742 $28,297 $28,862 $29,440 $394,812 Discount Rate (WACC) 11.00% assumed Net Present Value $322,757.14 Our current estimate of WalMart's total value in Millions