Relative Valuation

Create a case study of relative valuation. Analyze the value of Walmart (WMT) compared to average industry [e.g., XLF] and cohort (2-4 comparable companies) values. Assigned Questions: 1. Present Relative Valuation (Valuation by Comparables) - Use appropriate relative valuation models and conduct a Valuation by Comparables of Walmart (WMT). Select a meaningful Return Ratio and Price Ratio or multiple. Consider using the most recent 3-5 annual or quarterly periods with mean/median and standard deviation. How do you interpret and explain the results?

Why did you choose the ratios used for the comparison? 2. Present Enterprise Value and EV / EBITDA Ratio - Post the results of the Enterprise Value of the company that you have selected, along with its EV/EBITDA ratio, P/E Ratio, and PEG Ratio, along with those of a few competitors. Use normalized values - mean/median and standard deviation for industry [e.g., XLF] and cohort.

What do the results mean?

Answer rating: 100% (QA)

Case Study Relative Valuation of Walmart WMT compared to Industry and Cohort 1 Present Relative Valuation Valuation by Comparables In this analysis we will use the PricetoEarnings PE ratio as the valu... View the full answer