Application of Discounted Cash Flow Model Valuation – Wal-Mart

Tan, Zekuang (2016): Application of Discounted Cash Flow Model Valuation – Wal-Mart. Published in:

Abstract

The objective of this research paper is to examine if DCF models offer reliable and accurate valuations of Wal-Mart. With the purpose of achieving most accurate results, an efficient combination between theory and practice was implemented throughout the valuation. The DCF valuation of free cash flow to equity holders was performed and the stock price of Wal-Mart was suggested it to be $81.63. Afterwards, we tracked the six-month stock price movement of Wal-Mart, (from 2016 Jan to 2017 Jun) and surprisingly found that the price had climbed from $69.24 to $80.47.

• Item Type: MPRA Paper
• Language: English
• Keywords: DCF Valuation, Financial Ratio Analysis, Cash flow Analysis, Sensitivity Analysis
• Subjects: G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice ; Investment Decisions; G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing ; Trading Volume ; Bond Interest Rates

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