Walmart- Valuation Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Walmart- Valuation Case Solution

Introduction

Walmart is a leading multinational retail company, originated in America, established in 1962 by Sam Walton. The company operates through a chain of grocery stores, discount retail, and department stores. The company went public after successful operating years, in 1969. Walmart has about 11500 retail stores, in 28 countries. The company is also doing business through e-commerce with its online website offering products and services in 11 countries. There are 2.3 million associates working for the company worldwide including 1.5 million solely in U.S. It is a family owned business and is passed to successors within the family as time passes. Currently, C. Douglas Mcmillon is the CEO of Walmart.

Walmart got listed in 1972 on the New York Stock Exchange (NYSE). The company flourished after getting expansion from going into public, it became the most successful U.S retailer chain in 1988. The current stock price of the company is $71.14. Earnings per share is $4.52 and price earnings ratio is 15.74. The market capitalization is $221.87 billion. The payout ratio is 32.7% and dividend for the last year was $1.96 per share.

Product Line

Walmart operates as a chain of retail, grocery stores, and large departmental stores, where it primarily offers branded products under private label but at reduced discounted prices. The departments in which the Walmart products can be divided are:

Electronics and office
Home Improvement
Clothing, Shoes and Jewellery
Baby and Toddlers
Toys and Video Games
Food, Household and pets
Health, Beauty and Pharmacy
Sports, Fitness and Outdoors
Auto & Tires
Photo, Gifts and Personalized Shop
Crafts & Party Supplies

INDUSTRY AND ECONOMIC TRENDS

Competitors for the given company are the number of departmental stores operating all over the world, which are strongly competing with the given company that resulted in cutting the revenues,Wal-Mart is otherwise a big fish and is majorly unaffected by them. The other competitors include the Kmart, Publix, Target,and Shopko. Only small stores that operate on small niche market are competing successfully against Wal-Mart. The competition in terms of market rivalry is strong among mid-level departmental stores whose footprints also affects the operations of Wal-Mart, but Wal-Mart always manages to absorb some shocks of the market because of its large base of operations, the losses in one market or geographical area is compensated by another division of Wal-Mart, its strategic direction is based on a mix of strategies......................

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