How does the estimated intrinsic value compare to the current market value of the stock? What explains the difference?

Company is Walmart

Walmart Dividend Discount Model Valuation:

The purpose of this note is to carefully explain the general expectations and requirements for the Dividend Discount Model Valuation Assignment that is to be prepared for FINC 440. The information and materials presented here are intended to make sure that you clearly understand the general expectations and that there are no misunderstandings about what is to be done and what is expected.

Please review this material so that you are familiar with the specific requirements that are be followed in the preparation and submission of the Assignment.

1. Dividend Discount Model Valuation – Using the constant growth dividend discount model formula prepare a valuation estimate of the common stock of the company walmart. What are your findings? USE THE EXCEL MODEL PROVIDED BY PROF. STEVENS.

2. What are the principal assumptions used in the analysis? How do you defend them?

3. How does the estimated intrinsic value compare to the current market value of the stock? What explains the difference?

4. Do you believe that the dividend discount model is a useful approach to valuation? Why or why not?

Here is the Required Outline (It must be used for each Assignment) –

3 pages long excluding cover letter and references

The five class Assignments are intended to be constructive learning experiences. They are designed to show students how to prepare analytical reports in finance using critical thinking, research, and writing skills. The following outline is to be used for each Assignment; these titles are the required subheadings for the sections of the written report:

1. Cover Page – Include a cover page containing the title of the Assignment, the student’s name, the professor’s name, the course title, and the date.

2. Introduction – The Introduction must include:

(a) A review of the Assignment purpose, research methods and the principal information sources, and other information related to the completion of the analysis.

(b) The introduction should also include an overview of the sections of the paper that follow. (1/2 to 1 page)

3. Analysis Section – The body of the report is to address the assigned topics and questions. It is essential that students include appropriate in-text reference citations in APA format:

4. Summary / Conclusion – The summary or conclusion should review the major observations, conclusions and recommendations developed in the analysis. No new material should be introduced in this section. (1/2 to 1 page)

6. References – Provide list of references in APA format.

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