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	WACC_Market	6.99%	7.36%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	6.39%	6.14%
Enterprise value	EV_Market	248,007	240,821	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	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.
Long-Run Growth	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
Equational Form	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/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	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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