Business 570 AVE Managerial Finance ( Financial Ratio Analysis 2 (Walmart)

Financial Analysis Segment Two – Intrinsic Value

Due Date: End of Week 5

Determine how much a share of stock in your company SHOULD be worth, according to the following methods:

· Constant Growth Dividend Model

· Discounted Cash Flow

· P/E Ratio

· P/S Ratio

How does the current market price compare to those models predicted value for the stock? Why do you think there are discrepancies?

Be sure to specify where you obtained your estimate of the future growth rate in dividends. You may assume 11% for expected return of the market as a whole.

What is the expected return of your company’s stock using the Capital Asset Pricing Model? Be sure to specify what source you used for the Beta of your firm.