Assume Walmart has the following financial information: Sales: 59.43 Billion Net Income: 12.32 Billion Free Cash...
Assume Walmart has the following financial information:
Sales: 59.43 Billion
Net Income: 12.32 Billion
Free Cash Flows: 3.35 Billion
Total Equity: 96.36 Billion
Price Per Share: $129.15
Shares Outstanding: 1.7997 Billion
Benchmarks:
Price/Earnings: 20.53
Price/FCF: 13.35
Price/Sales: 2.15
Price/Book: 3.12
Calculate the comparable valuation price for Walmart...
1. Based on Price/Earnings (round to 3 decimals)
2. Based on Price/Sales (round to 3 decimals)
3. Based on Price/Book (round to 3 decimals)
Homework Answers
Add Answer to:
Assume Walmart has the following financial information:
Sales: 59.43 Billion
Net Income: 12.32 Billion
Free Cash...
You estimate the following free-cash-flow (FCF) data for LipCo (in millions). The firm’s long-term FCF growth...
You estimate the following free-cash-flow (FCF) data for LipCo
(in millions). The firm’s long-term FCF growth rate will be 3% per
year after year three and the firm’s cost of capital is 9%. LipCo
has no debt and 8 million shares outstanding. Using the corporate
valuation model, what is the intrinsic price of one share of LipCo?
(Round at the end)
9. You estimate the following free-cash-flow (FCF) data for LipCo (in millions). The firm's long-term FCF growth rate will...
Basic Stock Valuation: Free Cash Flow Valuation Model The recognition that dividends are dependent on earnings,...
Basic Stock Valuation: Free Cash Flow Valuation Model The recognition that dividends are dependent on earnings, so a reliable dividend forecast is based on an underlying forecast of the firm's future sales, costs and capital requirements, has led to an alternative stock valuation approach, known as the free cash flow valuation model. The market value of a firm is equal to the present value of its expected future free cash flows: Market value of company FCF (1+WACC) + FCF (1+WACC)...
Lockeran Co. has the following projected sales, costs, net investment and free cash flows in millions....
Lockeran Co. has the following projected sales, costs, net investment and free cash flows in millions. The anticipated growth rate in free cash flows after year 6 is 3% per year forever. there are 3 million shares outstanding and investors require a return of 8% on the company's stock. 1.Using the constant growth model to find the terminal value, calculate the price of the company's stock. 2. Suppose instead that you estimate the terminal value using a PE multiple of...
You estimate the following free-cash-flow data for a company (in millions). The firm's long term FCF...
You estimate the following free-cash-flow data for a company (in millions). The firm's long term FCF growth rate will be 3% per year after year three and the firm's cost of capital is 9%. The company has no debt and 8 million shares outstanding. Using the corporate valuation model, what is the intrinsic price of one share of LipCo? Free Cash Flows: Year 1: $5 Year 2: $10 Year 3: $12
Bynum and Crumpton, a small jewelry manufacturer, has been successful and has enjoyed a positive growth...
Bynum and Crumpton, a small jewelry manufacturer, has been successful and has enjoyed a positive growth trend. Now B&C is planning to go public with an issue of common stock, and it faces the problem of setting an appropriate price for the stock. The company and its investment banks believe that the proper procedure is to conduct a valuation and select several similar firms with publicly traded common stock and to make relevant comparisons. Several jewelry manufacturers are reasonably similar...
New Stock Issue Bynum and Crumpton Inc. (B&C), a small jewelry manufacturer, has been successful and...
New Stock Issue Bynum and Crumpton Inc. (B&C), a small jewelry manufacturer, has been successful and has enjoyed a positive growth trend. Now B&C is planning to go public with an issue of common stock, and it faces the problem of setting an appropriate price for the stock. The company and its investment banks believe that the proper procedure is to conduct a valuation and select several similar firms with publicly traded common stock and to make relevant comparisons. Several...
New Stock Issue Bynum and Crumpton Inc. (B&C), a small jewelry manufacturer, has been successful and...
New Stock Issue Bynum and Crumpton Inc. (B&C), a small jewelry manufacturer, has been successful and has enjoyed a positive growth trend. Now B&C is planning to go public with an issue of common stock, and it faces the problem of setting an appropriate price for the stock. The company and its investment banks believe that the proper procedure is to conduct a valuation and select several similar firms with publicly traded common stock and to make relevant comparisons. Several...
New Stock Issue Bynum and Crumpton Inc. (B&C), a small jewelry manufacturer, has been successful and...
New Stock Issue Bynum and Crumpton Inc. (B&C), a small jewelry manufacturer, has been successful and has enjoyed a positive growth trend. Now B&C is planning to go public with an issue of common stock, and it faces the problem of setting an appropriate price for the stock. The company and its investment banks believe that the proper procedure is to conduct a valuation and select several similar firms with publicly traded common stock and to make relevant comparisons. Several...
Heavy Metal Corporation is expected to generate the following free cash flows over the next five...
Heavy Metal Corporation is expected to generate the following
free cash flows over the next five years:
FCF ($ million)
year 1 / 52.5
year 2 / 66.4
year 3 / 79.7
year 4 / 76.9
year 5 / 80.8
Thereafter, the free cash flows are expected to grow at the
industry average of 4.4 % per year. Using the discounted free cash
flow model and a weighted average cost of capital of 13.6 %:
a. Estimate the enterprise value...
1. 2 3 You are valuing a company that is projected to generate a free cash...
1.
2
3
You are valuing a company that is projected to generate a free cash flow of $10 million next year, growing at a stable 3.0% rate in perpetuity thereafter. The company has $20 million of debt and $8 million of cash. Cost of capital is 10.0%. There are 50 million shares outstanding. How much is each share worth according to your valuation analysis? Round to one decimal place. Numeric Answer: You are asked to value Gamecocks Inc. using...
You estimate the following free-cash-flow (FCF) data for LipCo
(in millions). The firm’s long-term FCF growth rate will be 3% per
year after year three and the firm’s cost of capital is 9%. LipCo
has no debt and 8 million shares outstanding. Using the corporate
valuation model, what is the intrinsic price of one share of LipCo?
(Round at the end)
9. You estimate the following free-cash-flow (FCF) data for LipCo (in millions). The firm's long-term FCF growth rate will...
Basic Stock Valuation: Free Cash Flow Valuation Model The recognition that dividends are dependent on earnings, so a reliable dividend forecast is based on an underlying forecast of the firm's future sales, costs and capital requirements, has led to an alternative stock valuation approach, known as the free cash flow valuation model. The market value of a firm is equal to the present value of its expected future free cash flows: Market value of company FCF (1+WACC) + FCF (1+WACC)...
Heavy Metal Corporation is expected to generate the following
free cash flows over the next five years:
FCF ($ million)
year 1 / 52.5
year 2 / 66.4
year 3 / 79.7
year 4 / 76.9
year 5 / 80.8
Thereafter, the free cash flows are expected to grow at the
industry average of 4.4 % per year. Using the discounted free cash
flow model and a weighted average cost of capital of 13.6 %:
a. Estimate the enterprise value...
1.
2
3
You are valuing a company that is projected to generate a free cash flow of $10 million next year, growing at a stable 3.0% rate in perpetuity thereafter. The company has $20 million of debt and $8 million of cash. Cost of capital is 10.0%. There are 50 million shares outstanding. How much is each share worth according to your valuation analysis? Round to one decimal place. Numeric Answer: You are asked to value Gamecocks Inc. using...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago