2. A Summary of the Area(s) Pertinent to the Course. In this section, you are to clearly identify how this case relates to your text. Provide a minimum of three major concepts discussed in the text and identify how they are used in the case study.
4. A Detailed Case Discussion. Answer the following:

Assess the financial health of Wal-Mart based on an analysis of the financial statements. Address profitability and cashflow, asset efficiency (turnover ratios), and financial leverage using financial ratios (show your work).

Determine the intrinsic value of Wal-Mart (on a per share basis) using the constant growth version of the dividend discount model (DDM). Develop your "r" or cost of capital using the Capital Asset Pricing Model and information from the case and exhibits (show your work). Discuss some of the inherent assumptions of this model and their applicability to Wal-Mart at this point.

Determine the intrinsic value of Wal-Mart (on a per share basis) using the price-earnings (P/E) approach. As part of your analysis, you will need to determine an appropriate forward-looking P/E multiple (show your work). Clearly state any assumptions.

Compare your DDM and P/E valuations. Discuss which you believe to be the best estimate of Wal-Mart's valuation and whether, based on that valuation, you feel Wal-Mart is under or over valued at this time.

1. Summarize the main elements of your case and develop three take-aways you have from this assignment.

Answer rating: 100% (QA)

their implications for financial analysis as follows 1 Financial Health of Walmart Profitability and ... View the full answer