Walmart's Market, Financial Analysis and Valuation Analysis Based on Absolute Valuation Method - Relative Valuation Method

Kaiyue Chen

doi:10.54691/bcpbm.v44i.4976

Authors

Kaiyue Chen

DOI:

https://doi.org/10.54691/bcpbm.v44i.4976

Keywords:

Walmart; Relative Valuation; Absolute Valuation.

Abstract

After the short-term suspension of commercial activities under the COVID-19 influence, the retail industry has ushered in the rapid growth of demand, and the current growth rate has gradually returned to stability. During COVID-19, retail has become an indispensable part of life. As an essential participant in the retail industry, Walmart's development has attracted attention. However, there are few academic articles about Walmart's valuation. Therefore, the report will analyze Walmart's performance by market strategy, investment strategy, and financial. Then, use both relative and absolute valuations to value Walmart. For relative valuation, the report analyses three competitors to select comparable companies. And Absolute valuations are based on assumptions of future cash flows. The two approaches have different dimensions and can increase the informativeness of the results. After research, Walmart is undervalued, which reflects investors' expectations of the company. The report will provide investors and retail industry researchers with Walmart's developments and market value. However, people should pay attention to the impact of the economic and competitive environment on Walmart.

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