WMT — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($127.10)
DCF	$10.65	-91.6%
Graham Number	$27.71	-78.2%
Reverse DCF	—	implied g: 42.0%
DDM	$20.39	-84.0%
EV/EBITDA	$128.78	+1.3%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $7.77B

Near-term growth (yrs 1–5)(%)Rev: 5.6% / EPS: -19.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.79%

Computed WACC: 7.79%

Cost of equity (Re)7.99%(Rf 4.30% + β 0.67 × ERP 5.50%)

Cost of debt (Rd)5.95%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)93.79%

Debt weight (D/V)6.21%

Results

Intrinsic Value / share$14.78

Current Price$127.10

Upside / Downside-88.4%

Net Debt (used)$56.37B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-2.4%	1.6%	5.6%	9.6%	13.6%
7.0%	$10.86	$14.48	$18.68	$23.53	$29.13
8.0%	$7.65	$10.56	$13.93	$17.83	$22.31
9.0%	$5.43	$7.85	$10.65	$13.88	$17.60
10.0%	$3.80	$5.86	$8.24	$10.99	$14.15
11.0%	$2.55	$4.34	$6.41	$8.79	$11.51

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $2.73

Book Value / share($)Yahoo: $12.50

Results

Graham Number$27.71

Current Price$127.10

Margin of Safety-78.2%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.79%

Terminal growth rate(%)

Computed WACC: 7.79%

Cost of equity (Re)7.99%(Rf 4.30% + β 0.67 × ERP 5.50%)

Cost of debt (Rd)5.95%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)93.79%

Debt weight (D/V)6.21%

Results

Current Price$127.10

Implied Near-term FCF Growth37.2%

Historical Revenue Growth5.6%

Historical Earnings Growth-19.0%

Base FCF (TTM)$7.77B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $0.99

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$20.39

Current Price$127.10

Upside / Downside-84.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $44.18B

Target EV/EBITDA multipleCurrent: 24.5×

Net Debt($B)Default: $56.37B

Results

Implied Equity Value / share$128.78

Current Price$127.10

Upside / Downside+1.3%

Implied EV$1.08T

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$28.37B	$42.37B	$56.37B	$70.37B	$84.37B
20.5x	$110.13	$108.37	$106.61	$104.86	$103.10
22.5x	$121.21	$119.46	$117.70	$115.94	$114.19
24.5x	$132.30	$130.54	$128.78	$127.03	$125.27
26.5x	$143.38	$141.63	$139.87	$138.11	$136.36
28.5x	$154.47	$152.71	$150.96	$149.20	$147.44

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