Wal-Mart

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
Stephens Inc Ben Bienvenu ben.bienvenu@stephens.com
Raymond James Budd Bugatch budd.bugatch@raymondjames.com
Northcoast Research Chuck Cerankosky chuck.cerankosky@northcoastresearch.com
Jefferies Daniel Binder dbinder@jefferies.com
Consumer Edge Research David A. Schick dschick@consumeredgeresearch.com
Evercore ISI Greg Melich greg.melich@evercoreisi.com
Buckingham Research John Zolidis jzolidis@buckresearch.com
Telsey Advisory Group Joseph Feldman jfeldman@telseygroup.com
Daiwa Securities Co. Ltd. Kahori Tamada kahori.tamada@us.daiwacm.com
Credit Suisse Michael Exstein michael.exstein@credit-suisse.com
Cowen & Company Oliver Chen oliver.chen@cowen.com
Deutsche Bank Research Paul Trussell paul.trussell@db.com
CRT Capital Group Renato Basanta rbasanta@sterneageecrt.com
Nomura Research Robert S. Drbul robert.drbul@nomura.com
RBC Capital Markets Scot Ciccarelli scot.ciccarelli@rbccm.com
Wolfe Research Scott Mushkin smushkin@wolferesearch.com
BMO Capital Markets Wayne Hood wayne.hood@bmo.com

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Primary Input Data

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Derived Input Data

Derived Input

Label

2015 Value

2016
Value

Equational Form

Net Operating Profit Less Adjusted Taxes NOPLAT  15,951 14,488 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF 15,923 21,046 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 819 728 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 134,859 132,174 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 11.83% 10.96% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv 6,534 7,303 NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR 40.96% 50.41% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
WACCMarket 6.99% 7.36% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook  6.39%  6.14%
Enterprise value
EVMarket 248,007 240,821 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook  247,302  238,914
Long-Run Growth
g = IR x ROIC
4.85% 5.53% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP  2.50%  2.50%
Margin from Operations M 5.08% 4.60% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D 27.71% 30.95% D\,\,=\,\,\frac{D+A}{EBITDA}

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value

Single-stage

multiple g solution

Two-stage valuation

model g solution

12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016

EV/SALES 

\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

0.51  0.50  1.23%  2.98%  1.85%  5.11%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

7.31 7.46 1.23% 2.98% 1.85% 5.11%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

15.55 16.62 1.23% 2.98% 1.85% 5.11%

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

15.58 11.44 1.23% 2.98% 1.85% 5.11%

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

10.11 10.80 1.23% 2.98% 1.85% 5.11%

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

1.84 1.82 1.23% 2.98% 1.85% 5.11%

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