Valuation Assignment - Introduction to the Company
A local Private Equity firm based in based in Amsterdam would like to make a move and acquire a significant stake in Walmart. Wal-Mart Stores, Inc. operates retail stores in various formats worldwide. It operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It has come to the knowledge of management of the private equity firm that Walmart is in need of urgent capital to expand its line of products to meet increasing demand over the next decade.
Stock price performance for this company can be downloaded using Yahoo! Finance for free, so it is not provided on Blackboard. It is recommended that the student selects a relevant benchmark within the firm's home market with justification. However, you are free to choose among many available benchmark indices (S&P 500, Russel 3000, MSCI Index, etc.) but make sure you provide information used and your reasoning behind the choice.
- Show full spreadsheet computed regression output of company Beta as a measure of Market Risk
- Give full explanation of the source and justification of your assumed Risk-free rate used in CAPM or any other model chosen to compute the cost of Equity.
- In case you prefer to lever and re-lever the Beta of the company, show full calculation in your Notes within the Excel Sheet and details on comparable firms.
- Make sure you accurately and correctly compute your own WACC (Weighted Average Cost of Capital); no element of WACC estimation should be copied from the internet.
Attachment:- Assignment Files.rar