Retail Business Organization. Financial Performance and Valuation of “Walmart” in the USA

Table of Contents

• ABSTRACT
• SECTION-A: INTRODUCTION
• SECTION-B: THEORETICAL FRAMEWORK-
• OVERVIEW OF RETAILING
• RETAILING IN THE WORLD VS. USA.
• WALMART ANALYSIS: CRITICS AND PRAISE
• SECTION-C: PRESENTATION OF WALMART.
• BRIEF HISTORY
• CORPORATE PROFILE
• BUSINESS DYNAMICS AND FINANCIAL TRENDS
• SECTION-D: WALMART MARKET ANALYSIS.
• PERFORMANCE METRICS.
• COMPETITIVE CIRCUMSTANCES-
• MAJOR COMPETITORS PROFILE
• Competitive Advantage--
• SWOT ANALYSIS OF WALMART
• MICRO LEVEL ANALYSIS (PORTER'S FIVE FORCES MODEL)
• Threat of substitute products and services-
• Threat of new entrants---------\nCompetitive rivalry within the industry
• Bargaining power of customers
• Bargaining power of suppliers
• MARKET RISK
• Currency Risk-
• Strategy and Competitive Forces
• SECTION-E: HISTORICAL FINANCIAL DATA AND FREE CASH FLOW FORECASTS
• FINANCIALS
• KEY RATIOS
• FREE CASH FLOW FORECASTS
• PERSISTENCE AND SUSTAINABILITY OF HISTORICAL FINANCIAL DATA-
• SECTION-F: WALMART VALUATION AND COMPARISON
• CONCEPTUAL APPROACH TO VALUATION
• PERPETUAL GROWTH RATE
• WEIGHTED AVERAGE COST OF CAPITAL (WACC).
• Calculating Cost of Equity, Ke
• Calculating Cost of Debt, Ka
• Calculating Weighted Average Cost of Capital (WACC).
• TERMINAL VALUE
• FUNDAMENTAL VALUE
• MARKET VALUE (MV).
• Market Capitalization
• Enterprise Value (EV).
• COMPARISON
• SECTION-G: ANALYSIS, RECOMMENDATION AND CONCLUSION-
• FUNDAMENTAL ANALYSIS AND RECOMMENDATION

Objectives and Key Themes

This study aims to provide an in-depth analysis of the retail business in the world, with a specific focus on the United States of America (USA). It analyzes the financial performance of Walmart Stores, Inc., the world's largest retail company, and presents a valuation of the company. The study also examines the competitive circumstances facing Walmart, which is crucial for financial market analysts, investors, and customers.

• Retail Business in the World, particularly in the USA
• Financial Performance of Walmart Stores, Inc.
• Valuation of Walmart
• Competitive Circumstances in the Retail Industry
• Future Prospects and Investment Recommendations for Walmart

Chapter Summaries

• ABSTRACT: Provides a brief overview of the study, highlighting its objectives, key findings, and conclusions. It emphasizes the importance of Walmart's financial analysis and valuation in understanding its competitive position and investment potential.
• SECTION-A: INTRODUCTION: Introduces the topic of retail business and sets the context for the study of Walmart. It discusses the importance of the retail sector and its relevance to the global economy.
• SECTION-B: THEORETICAL FRAMEWORK: Presents a theoretical framework for understanding the retail industry. It includes a discussion of the evolution of retailing, the different types of retail formats, and the key factors that influence retail success.
• SECTION-C: PRESENTATION OF WALMART: Provides a detailed overview of Walmart, including its history, corporate structure, business model, and financial performance.
• SECTION-D: WALMART MARKET ANALYSIS: Analyzes the competitive landscape in which Walmart operates. It includes a discussion of major competitors, industry trends, and Porter's Five Forces analysis.
• SECTION-E: HISTORICAL FINANCIAL DATA AND FREE CASH FLOW FORECASTS: Presents a comprehensive analysis of Walmart's financial performance. It includes key ratios, free cash flow forecasts, and an assessment of the persistence and sustainability of Walmart's historical financial data.
• SECTION-F: WALMART VALUATION AND COMPARISON: Provides a detailed valuation of Walmart using a variety of methods. It includes a comparison of the company's intrinsic value with its market value and a discussion of the implications for investors.

Keywords

This study focuses on Walmart, financial analysis, the retail industry, market analysis, and valuation. It examines the performance of Walmart in the context of its competitive environment, providing insights into the company's financial health, future prospects, and investment potential. Key concepts include free cash flow forecasting, cost of capital, terminal value, and investment recommendations based on a thorough assessment of Walmart's financial position.