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E13-19

sol imating Share Value Using the DCF Model of January 31, 2016, for Walmart Stores Inc. re forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as (v Horizon Period Reported 2016 Terminal Period $482,130 $486,951 $491,821 $496,739 $501,706 $506,723 17,043 17,214 17,386 17,560 17,735 $ millions 2017 2018 2019 2020 ..$ 16,634 NOPAT 124,940 126,186 127,448 128,722 130,009 31,309 Answer the following requirements assuming a discount rate (WACC) of 7%, a terminal period growth rate of 1%, common shares outstanding of 3,144 million, net nonoperting obligations (NNO) of 41,329 million, and noncontrolling interest (NCI) on the balance sheet of $3,065 million. a. Estimate the value of a share of Walmart's common stock using the discounted cash flow (DCF) model as of January 31, 2016. b. Walmart (WMT) stock closed at $68.80 on March 30, 2016, the date the 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? What do you believe are some reasons for the difference? 1-9. Estimating Share Value Using the ROPI Model Refer to the information for Walmart Stores Inc. in E13-18 to answer the following requirements. ma as ote value of a are of Walmart commoninhriduPD almart (WMT) stock closed at $68.80 on March 30, 2016, the date the 10-K was filed with the Fhow does your valuation estimate compare with this closing price? What do you believe are a. Estimate t some reasons for the difference

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