Essay Value Walmart

Wal-Mart's gives their suppliers little choice in the way of price in most cases. The Wal-Mart suppliers either goes along with the everyday low price deal and lowers the price by at least five percent or Wal-Mart's will find a different supply company or will not carry the product. Wal-Mart also made their suppliers buy a merchandise tracking system that cost the supplier plenty and the Wal-Mart chain little. There are companies that do a lot of business with Wal-Mart and have to put up with this company so to say these are the companies that sell a lot of different products Diamond Foods and Boulder Brands for example both do nineteen percent of its business with Wal-Mart and would have to make that up elsewhere if they chose not

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Wal-Mart Corporation is one of the largest retail stores in the world. They serve customers in meeting their needs with low cost saving items. On October 31, 1962, Wal-Mart was founded and incorporated by Sam Walton in Bentonville, Arkansas. Mr. Walton went into business because he felt that items sold were too high for the average customer to afford. His focus was to sell products at low prices to get higher volume sales at a lower profit margin. He bought bulk products from different suppliers so he could incorporate savings into his pricing to lower cost for customers. Under the savings cost concept, Wal-Mart grew rapidly and surpassed its competitors in sales and generating profits.

The purpose of this report is to evaluate the stock price of Wal-Mart Stores Inc. (which ticker symbol in NYSE is WMT) by fundamental analysis. According to this analysis, I recommend that Wal-Mart is worth to invest in the long term because of the potential growth of market shares and revenue. Besides, based on P/E method and Gordon model, WMT price is undervalued; therefore, if investors buy the stock, they will get benefit not only in capital gain but also in dividend cash inflow.

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In 2005, Robert Greenwald released Wal-Mart: The High Cost of Low Price, a motion picture that divulges how Wal-Mart Stores, Inc., a wholesale department store established by Sam Walton in 1962, absconded from its chasten inaugurations, to ultimately progress and develop into a principal vendor of America, and soon afterwards the vastest transnational conglomerate on the planet, once one grounds their statistics on revenue. However, Greenwald undoubtedly affirms that the policies Wal-Mart has emplaced have not solely been detrimental to the already austere American economy, but also to the welfare of their personnel. Furthermore, Wal-Mart: The High Cost of Low Price congregates on various sociopolitical disputes that validate how Wal-Mart

Approach any random stranger in America and ask them where they can get their groceries, clothes, appliances, and electronics from at a cheap price and they will most likely say Wal-Mart. A pioneer of the “one-stop-shop”, Wal-Mart has evolved from a small, wholesome shopping mart into a world renown corporation. America has not seen a complete domination of the market in this manner, since the mid 1900’s with General Motors. Wal-Mart has revolutionized the American culture of saving money. With all of the successes, there are also many consequences and controversies that flood the corporation’s name, making it also one of the most infamous and negatively viewed businesses in the world. The unethical working conditions, wages, and lack of benefits combine with the undeniable truth of Wal-Mart’s monopoly of the variety store genre has deemed the company “evil” among many Americans. However, there is a reason as to why Wal-Mart is still exponentially growing in net worth every single day. It is the success story that gives millions hope and strive to achieve. People may look down upon Wal-Mart, but it is a great asset to America as it provides jobs for millions of Americans, offers necessities at the lowest price possible, and is the physical embodiment of the American dream.

As the largest retailer in United State’s history, Wal-Mart attracts both praise and criticism. According to the company website, Wal-Mart sells more than $400 billion worth of goods a year and employees more than 2.2 million people. Wal-Mart is famous for its low prices, which have attracted criticism for being predatory and therefore pushing out competing businesses. Because Wal-Mart is extremely large, it has become a price setter for both sellers and competition. Furthermore, to maintain Wal-Mart’s prices, workers are paid low wages and, as some would argue, are exploited.

Is Wal-Mart good for communities, or is Wal-Mart a wolf in sheep's clothing? With a gross annual sales of over $67 billion and more than 2,000 stores, Wal-Mart is one of the biggest corporations in the United States. Wal-Mart opens a new store once every two days in small communities and cities across the United States, however, are these stores good for these communities, or are they wrecking havok? When you look down at the fine print Wal-Mart doesn't earn it's money it steals it money from other businesses. Choking other smaller businesses by offering wider varity of products at a more competitive price. This is actually a very simple business tactic if you want to sell a lot of something cut your profit margin to beat the

According to Fortune 500 (2008), Wal-Mart CEO, Lee Scott dramatically cut prices on 15,000 items because of the brutal fourth-quarter retail forecasts. He cut the prices a staggering 20 percent to lure in shoppers for the holidays. By doing so, Wal-Mart pressured other retailers in the industry to pinch already tight margins. Fortunately for Wal-Mart, the method worked. Wal-Mart grossed $100 billion, breaking its fourth-quarter sales record. Wal-Mart also beat a large competitor, Target, for the first time in almost a decade. CEO, Lee Scott assumed the worst because of the fourth-quarter retail forecast, and did what many retailers don’t want to do, cut prices so dramatically, it almost becomes a scare

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One example of environmental scanning Best Buy used is in 1999 when they realized the increase in popularity of digital electronics. They changed their store formats to highlight these digital products. There most recent environmental scanning change was to get in touch with their feminine side. They have recently put a more personal touch in to their stores and customer service.

We assumed that earnings will grow at a constant rate of 6% forever. This model gave us theoretical value of $58.7. 4) Our fourth valuation model is based on multipliers. Here we compared Walmart with industry and its competitors. Walmart’s price to sales ratio of 0.45 reflects that investor pays only 45cents for every dollar sales.

I understand Walmart is a one stop shop and you can get everything you need at one place, but it does come at a price to everyone. “Many Walmart workers are forced to utilize state subsidized benefits. Three major studies—one in Georgia, one in California, and one in Massachusetts—found that Walmart was the employer that had workers most reliant on government assistance. It is estimated that Walmart employees cost taxpayers more than $1 billion nationwide” I think for Walmart to be making so much revenue they are being greedy to their employees.

The founder of the Wal-Mart chain, Sam Walton was born in March 1918 in the town of Kingfisher, Oklahoma. Graduating from the University of Missouri, Sam enlisted in the Army for the World War II effort. Upon his return, Sam worked for a while at the J.C. Penney group of stores. He began to realize that opportunities existed in the large scale discount retailing business (nickel and dime stores). The idea and business philosophy of Wal-Mart borrowed from the nickel and dime stores of earlier times, and consisted of getting National Brands in bulk at a discount based on volume purchases; the company would then stamp its mark and resell the goods at a slight markup, this rate being however less than the other competing Mom and Pop stores