I. Executive Summary
The purpose of this report is to evaluate the stock price of Wal-Mart Stores Inc. (which ticker symbol in NYSE is WMT) by fundamental analysis. According to this analysis, I recommend that Wal-Mart is worth to invest in the long term because of the potential growth of market shares and revenue. Besides, based on P/E method and Gordon model, WMT price is undervalued; therefore, if investors buy the stock, they will get benefit not only in capital gain but also in dividend cash inflow.
II. Introduction of Wal-Mart Stores Inc. (WMT)
Wal-Mart, founded by Sam Walton in 1962, is the world’s largest retailer and public corporation. It operates over 6,500 stores worldwide, employs 1.9 million associates, and serves more
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Beta is the slope of the characteristic line. As shown in appendix1, we use the monthly historical data from April 2003 to April 2008 to graph SCL. We use S&P 500 as the market because it contains the stocks of 500 Large-Cap corporations and can reflect the market change broadly. As shown in exhibit 1, we can get the SCL: Ri-Rf = - 0.001 + 0.1649(Rm - Rf). So the beta is 0.1649 and the alpha (intercept) is -0.001. From the regression line, we find the R square is only 0.103. It reflects the degree that X variable explains Y variable is 10.3%. That is, Ri-Rf has no close relationship with Rm-Rf. In addition, due to the fact that beta is only 0.1649, it also provides the same result which Ri-Rf and Rm-Rf have no strong positive relationship. It is a good issue to consider why Wal-Mart stock return does not relate with S&P 500 return very well. From exhibit 2, we find the Wal-Mart price did not change very much while S&P 500 price went up. The major reasons may be that S&P 500 includes many high-tech stocks and those stocks performed very well during the period; therefore the volatility is greater than Wal-Mart. Moreover, maybe Wal-Mart has lower weight in S&P 500 so its trend of price change is different from S&P 500. From exhibit2, we also find Wal-Mart had good relationship with S&P 500 before 2004. To examine the situation, we use the data from 1998 to 2003 and find the SCL
Walmart is the largest discount retailer in the world. The company started out as a small chain of stores in rural towns. Walmart was founded by Samuel Walton in 1962. In the United States they employed the most workers. Walmart supply grocery store and automotive repair shop for customers. With this being one of the largest chain stores valUes and attitudes is very important in the workplace.
Wal-Mart Corporation is one of the largest retail stores in the world. They serve customers in meeting their needs with low cost saving items. On October 31, 1962, Wal-Mart was founded and incorporated by Sam Walton in Bentonville, Arkansas. Mr. Walton went into business because he felt that items sold were too high for the average customer to afford. His focus was to sell products at low prices to get higher volume sales at a lower profit margin. He bought bulk products from different suppliers so he could incorporate savings into his pricing to lower cost for customers. Under the savings cost concept, Wal-Mart grew rapidly and surpassed its competitors in sales and generating profits.
Wal-Mart Stores, Inc. is a company based in America and it was started in 1962. The company is in the retail industry and it operates grocery stores, discount stores, and hypermarkets. The company’s headquarters are located in Arkansas. According to the Fortune Global 500, Wal-Mart is categorized as the world’s leader in revenue. The company is also considered to be the largest private employer in the world with a total of 2.2 million employees. The employees are found in the 11,666 stores, located throughout the world in 28 countries. The total revenue for the company in 2016 was
Founded by Sam Walton in 1962 as a discount city store in Bentonville, Wal-mart was incorporated as Wal-Mart Stores Inc. on October 31, 1969 as an American public corporation that runs a chain of large, discount department stores. Within five years, the company expanded to 24 stores across Arkansas and reached $12.6 million in sales.Wal-Mart further expands outside America and operates in Mexico as Walmex, in the UK as ASDA, and in Japan as Seiyu. It has wholly-owned operations in Argentina, Brazil, Canada, Puerto Rico, and the UK.Presently listed on NYSE, Wal-Mart began trading stock as a publicly-held company on October 1, 1972. According to the 2007 Fortune Global 500, Wal-Mart is the world's largest
Walmart is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. According to the 2014 Fortune Global 500 list, Walmart is the world’s largest public corporation, the largest retailer in the world, the biggest private employer in the world with over two million employees, and also one of the world’s most valuable companies. Founded in 1962 by Sam Walton, the company now has over 11,000 stores in 27 countries, proof that Walmart has grown significantly over the last five decades.
Wal-Mart grocery supermarket, the company by the American retail legend Mr. Sam Walton, was established in 1962 in Arkansas. After more than forty year’s development, Wal-Mart has become the largest grocery retailer. At present, the Wal-Mart in 15 countries worldwide has opened more than 8000 stores, owned 53 brands, and employed more than 2.1 million staffs. On average, more than 200 million customers step in Wal-Mart per week.
Wal-Mart was first opened in 1962 by Sam Walter as a retail store. It started out a five and dime store in Rogers, Arkansas and was called Walton’s. He opened this store with one goal in mind, to sale at the lowest prices possible, quality leadership and great customer services. He thought that his idea could change the retail industrial. Wal-Mart was built on a solid foundation that remains stable even after the death of Mr. Walton. Wal-Mart became the largest multinational retail store in America, with a grocery store and a pharmacy. There is a Wal-Mart in all fifty states and seventeen international states and has more than 2.3 million employees. This store
Walmart is a Retail company founded in July 2 of 1962 by Sam Walton at the city Rogers, Arkansas in the USA. According to the Fortune Global 500 (Fortune, 2014), it’s the company with the biggest total revenue in the world and it is a family-owned business managed by the Walton family.
Wal-Mart was founded by Sam Walton, the first Wal-Mart store opened in Rogers, Arkansas, in 1962. Seventeen years later, annual sales toped $1 billion. By the end of January 2002, Wal-Mart Stores, Inc. was the world's largest retailer with $218 billion in sales. Wal-Mart's winning strategy in the U.S. was based on selling branded products at low cost, which enables the lower class and middle class consumers to shop for products and save. Due to the advances in technology over the years Wal-Mart has been able to achieve tremendous success. Wal-Mart's success has allowed the company to expand out of the United States.
Wal-Mart was founded by Sam Walton in 1962 and was based in Bentonville, Arkansas. Wal-Mart in the successive years has grown to be the world's largest retailer and has more than 4000 stores worldwide. Wal-Mart employs 1.7 million workers worldwide and boasts of 138 million customers every week. Rachael Martin was an investment advisor and was tasked to valuate the Wal-Mart stock with the help of three widely accepted models i.e. dividend discount model, the capital asset pricing model and the price / earnings multiples.
In 1962, Sam Walton opened the first Wal-Mart in Rogers, Arkansas. Little did Walton know that a few years later, his company would be transformed into Wal-Mart Stores, Inc. Wal-Mart officially became a publicly traded company in 1970, selling their first stock at $16.50 per share (Our History, 2016). In today’s society, Wal-Mart serves many different uses across the globe. However, their consumers are typically Americans. It is the one-stop shop for the everyday American citizen. Wal-Mart serves use for consumers to purchase apparel, groceries, appliances, and much more. According to the Full Fortune 500 list for 2016, Wal-Mart is the world’s largest company by revenue (Fortune 500, 2016).
Wal-Mart is an American multinational retail giant founded and headquartered in Arkansas. The company was founded by Sam Walton and is still considered a family run company with over 11,000 stores in 27 countries (Walmart.com). It operates under different names in certain countries. For example: Asda in the U.K., Seiyu in Japan, Best Price in India, and Walmart de Mexico y Centro America
Wal-Mart, first opened in 1962 by Sam Walton in Rogers,Arkansas, has become the largest retailer in the world, with almost 10000 store locations and approximately 2 million employees worldwide. Despite the death of Sam Walton in 1992, Wal-Mart continues to be successful, reaching record annual sales of $437 billion in 2012. Each week, over 100 million customers visit a Wal-Mart store. Wal-Mart Stores have stood at #1 position on Fortune 's 500 and Global 500 lists for the year 2012 as CNN reports.
Walmart is the largest retailer in the world which offers a good discounts to its customers. It deals in a variety of goods with 31 departments in total. The most common department is the household grocery department which provides a one stop shopping opportunity. The Company started just as a small chain of small stores in the rural communities. It was founded in the year 1962 by Samuel Walton. Currently, Walmart is one of the largest employers in the United States and offering low prices.
Wal-Mart Stores Inc. or Walmart is a multinational retail organization that has numerous chains of large discount warehouse and general stores. The company was formed in 1962 by Sam Walton as a family-owned business. It was incorporated in 1969 and traded on the Stock Exchange of New York publicly in 1972. Since then this organization has grown strength to strength winning various accolades. In 1988, it was ranked as the most profitable retail business in America outselling competitors such as K-Mart and Sears in the retail business (Fishman, 2006).