Wal-Mart Stores - Comparative Multiple Analysis

Wal-Mart Stores (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Wal-Mart Stores

WikiWealth compares Wal-Mart Stores's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Wal-Mart Stores's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Wal-Mart Stores.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Wal-Mart Stores's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Wal-Mart Stores's Analysis

How does this work? The Comparative Investment Analysis determines the value of Wal-Mart Stores by comparing Wal-Mart Stores financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Wal-Mart Stores.

See the Wal-Mart Stores cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Wal-Mart Stores.

Also, see the Wal-Mart Stores's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Wal-Mart Stores's valuation conclusion for a quick summary.