| Walmart --- Pro Forma Income Statements ($ in millions) M&A - Current Value Estimate - 2019 Actual | | | | | | | | Terminal Value |
| Year | Fiscal Year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Year 5 |
| Sales | | $514,405 | $524,693 | $535,187 | $545,891 | $556,809 | $567,945 | Growth Rate | | 2.00% |
| Variable Costs | 75.00% | $385,301 | $393,520 | $401,390 | $409,418 | $417,606 | $425,959 |
| Gross Profit | | $129,104 | $131,173 | $133,797 | $136,473 | $139,202 | $141,986 |
| Fixed Costs - SG&A | | $96,469 | $98,398 | $100,366 | $102,374 | $104,421 | $106,510 | | | 2.00% |
| Other Income | | ($4,800) |
| Depreciation | | $10,678 | $10,892 | $11,109 | $11,332 | $11,558 | $11,789 | | | 2.00% |
| EBIT | | $17,157 | $21,883 | $22,321 | $22,767 | $23,223 | $23,687 |
| Taxes | 23.00% | $4,790 | $5,033 | $5,134 | $5,237 | $5,341 | $5,448 |
| Net Income | | $12,367 | $16,850 | $17,187 | $17,531 | $17,882 | $18,239 |
| EPS - Before Interest Exp. | | $4.19 | $5.71 | $5.83 | $5.94 | $6.06 | $6.18 |
| | | Cash Flows |
| Operating Cash Flow | | | $27,742 | $28,297 | $28,862 | $29,440 | $30,029 |
| Residual Value | (OFFER) | | | | | | | $364,783.27 | PE Mulitple | 20 | assumed |
| Capital Spending | 0 | | 0 | 0 | 0 | 0 | 0 |
| Cash Flow | $0 | | $27,742 | $28,297 | $28,862 | $29,440 | $394,812 |
| Discount Rate (WACC) | 11.00% | assumed |
| Net Present Value | $322,757.14 | Our current estimate of WalMart's total value in Millions |
| Shares Outstanding | 2,950,000,000 |
| Value Per Share | $ 109.41 | Based on your growth, PE, WACC, and Outstanding Shares Assumptions |
| | | this is your valuation of Walmart's shares |
| Students, you change the numbers above in RED to reflect your analysis of the company … the value of the |
| company will update based on you assumptions … |
| Assumptions of growth, cost structure, taxes, PE Ratio, WACC, and Shares Outstanding. |
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Unit9_Walmart_Proforma_Income1.xlsx
