07 03 User Defined Functions Walmart Model Valuation Before

Wal-Mart Stores, Inc.
- Operating Model and Valuation
Wal-Mart Stores, Inc. - Summary of Financial Statements

($ in Millions, Except per Share Figures)
January 31,
Revenue:
Revenue Growth:
Operating Income:
Operating Margin:
Net Income:
Earnings Per Diluted Share:
Historical
2011
2012
2013
2014
421,849 $
3.4 %
471,317 $
5.5 %
493,709 $
4.8 %
28,272
6.0 %
29,615
6.0 %
25,542
6.1 %
15,355
4.18
446,950 $
6.0 %
26,558
5.9 %
15,766
4.54 $
Projected
2015
2016
2017
515,675 $
4.4 %
534,773 $
3.7 %
551,404
3.1 %
30,932
6.0 %
32,078
6.0 %
33,076
6.0 %
17,215
5.12 $
18,084
5.55 $
18,983
6.03 $
19,592
6.45 $
20,265
6.92
Cash Flow from Operations:

Cash Flow from Investing:
Cash Flow from Financing:
23,643
(12,193)
(12,028)
24,255
(16,609)
(8,458)
27,687
(14,139)
(9,908)
29,119
(14,814)
(13,623)
30,368
(15,477)
(12,948)
31,304
(16,053)
(14,383)
32,171
(16,555)
(11,423)
Total Assets:
Total Debt + Capital Leases:
Cash & Cash-Equivalents:
180,782
49,864
7,395
193,406
53,427
6,550
204,606
56,847
10,157
213,521
57,074
10,806
223,900
58,542
12,717
233,126
59,187
13,553
245,593
63,452
17,713
36,827 $
7.8 %
38,576 $
7.8 %
40,293 $
7.8 %
41,785 $
7.8 %
43,084
7.8 %
EBITDA:
EBITDA Margin:
33,183 $
7.9 %
34,688 $
7.8 %
Wal-Mart Stores, Inc. - Valuation Multiples
January 31,
EV / Revenue:
EV / EBITDA:
P / E:
Historical
2011
2012
0.7 x
8.8 x
16.0 x
2013
0.6 x
8.3 x
14.6 x
2014
0.6 x
7.9 x
13.9 x
Projected
2015
0.6 x
7.5 x
13.3 x
2016
0.6 x
7.3 x
12.9 x
2017
0.6 x
7.1 x
12.4 x
Graphs and Analysis of Financial Model Output - Wal-Mart Stores, Inc.
Wal-Mart: Revenue vs. Gross Margins

$600 B
$500 B
Revenue
$422 B
$551 B 25.4 %
$516 B $535 B
$494 B
$471 B
25.3 %
$447 B
$400 B
25.2 %
$300 B
25.1 %
$200 B
25.0 %
$100 B
24.9 %
$0 B
1/1/2011
1/1/2013
Revenue
1/1/2015
1/1/2017
Gross Margins
24.8 %
Gross Profit Margin
Wal-Mart US Stores: Square Feet and Sales Per Square Foot

700 K
$430
674 K $428
665 K
656 K
660 K
$426
646 K
637 K
640 K
$424
627 K
617 K
620 K
$422
606 K
680 K
Total Square Feet
600 K
$420
580 K
$418
560 K
1/1/2010
1/1/2013
Total Square Feet, US Stores
1/1/2016
Sales Per Square Foot
$416
Sales Per Square Foot
Wal-Mart: Revenue, EBITDA, and Margins

$600 B
$535 B$551 B
$516 B
$494 B
$471 B
$500 B
$447 B
$422 B
$400 B
Gross Margins
Revenue and EBITDA
7.9 %
7.9 %
7.8 %
7.8 %
7.8 %
$300 B
7.8 %
$200 B
7.8 %
$100 B
7.7 %
$43
B
$42
B
$40
B
$39
B
$37
B
$33 B $35 B
7.7 %
uare Foot
s Per Square Foot
$0 B
1/1/2011
Revenue
1/1/2014
EBITDA
1/1/2017
EBITDA Margin
7.7 %
EBITDA Margins
Margins
51 B
7.9 %
7.9 %
7.8 %
7.8 %
7.8 %
7.8 %
7.8 %
7.7 %
$43 B 7.7 %
/2017
rgin
7.7 %
EBITDA Margins
Wal-Mart Stores, Inc. - Operating Model and Valuation
Standalone Operating Model - Assumptions - Wal-Mart Stores, Inc.

Company Name:
Ticker:
Current Share Price:
Last Historical Year:
Valuation Date:
Allow Circular References?
Operating Case:
Units:
Units for Square Feet:

WMT
$
73.26
1/31/2012
3/4/2013
No
2 Base
1 Conservative
2 Base
3 Management
1,000,000
1,000

Revenue Scenarios - Wal-Mart Stores, Inc.
Historical
1/31/2010
1/31/2011
1/31/2009
Total Revenue, Selected Case:
408,085
US Stores - Sales ($MM):

US Stores Sales Growth %:
US Stores - Square Feet:
US Stores - $ per Sq. Ft.:
259,919
592,256
$
US Stores - Square Feet - YoY Growth:

Conservative Case:
Base Case:
Management Case:
Selected Case:
Base
605,852
429.01 $
2.3 %
2.3 %
2.3 %
(1.7%)
(1.7%)
(1.7%)
97,407
265,846
366.40 $
244,802
Int'l Stores - Square Feet - YoY Growth:

Conservative Case:
Base Case:
Management Case:
Selected Case:
Base
8.6 %
8.6 %
8.6 %
109,232
12.1 %
286,680
381.02
7.8 %
7.8 %
7.8 %
Int'l Stores - $ per Sq. Ft. - YoY Growth:

Conservative Case:
Base Case:
Management Case:
Selected Case:
Base
Other - Sales ($MM):
Other Sales Growth %:
Other - Square Feet:
Other - $ per Sq. Ft.:
260,261
0.1 %
617,067
421.77
1.9 %
1.9 %
1.9 %
US Stores - $ per Sq. Ft. - YoY Growth:

Conservative Case:
Base Case:
Management Case:
Selected Case:
Base
Int'l Stores - Sales ($MM):
Int'l Stores Sales Growth %:
Int'l Stores - Square Feet:
Int'l Stores - $ per Sq. Ft.:
421,849
4.0 %
4.0 %
4.0 %
47,806
80,539
593.58 $
80,986
49,459
3.5 %
81,202
609.09

Other - Square Feet - YoY Growth:
Conservative Case:
Base Case:
Management Case:
Selected Case:
Base
(0.6%)
(0.6%)
(0.6%)
0.8 %
0.8 %
0.8 %
Other - $ per Sq. Ft. - YoY Growth:

Conservative Case:
Base Case:
Management Case:
Selected Case:
Base
Membership Fees ($MM):
2.6 %
2.6 %
2.6 %
2,953
2,897

Income Statement - Wal-Mart Stores, Inc.
Revenue:
Revenue Growth:
Cost of Revenue:
Cost of Revenue % Revenue:
Historical
1/31/2011
$
314,946
74.7 %
Gross Profit:
Gross Margin:
106,903
25.3 %
Sales, General & Administrative Expenses:

% Revenue:
81,361
19.3 %
Operating Income:
Investment Income:
Interest Expense:
Pre-Tax Income:
Provision for Income Taxes:
% Pre-Tax Income:
Consolidated Net Income:
Less: Noncontrolling Interest Earnings:
Net Income Attributable to Parent:
Diluted Shares:
Diluted Earnings per Share (EPS):
EBITDA:
EBITDA Margin:
EBIT:
EBIT Margin:
421,849
25,542
201
(2,205)
23,538
7,579
32.2 %
$
$
15,959
(604)
15,355
3,670.00
4.18
$
$
33,183
7.9 %
25,542
6.1 %

Balance Sheet - Wal-Mart Stores, Inc.
Assets:
Current Assets:
Cash and Cash Equivalents:
Accounts Receivable, Net:
Inventory:
Prepaid Expenses & Other:
Total Current Assets:
Historical
1/31/2011
Long-Term Assets:
Net PP&E:
Goodwill:
Capital Lease Assets:
Other Long-Term Assets:
Total Long-Term Assets:
Total Assets:
Liabilities & Shareholders' Equity
Current Liabilities:
Revolver / Short-Term Debt:
Accounts Payable:
Accrued Liabilities & Other:
Accrued Income Taxes:
Total Current Liabilities:
105,098
16,763
2,780
4,129
128,770
$
180,782
1,031
33,676
18,748
157
53,612
Long-Term Liabilities:
Total Long-Term Debt (All Portions):
Total Capital Leases (All Portions):
Deferred Income Taxes:
Redeemable Noncontrolling Interests:
Total Long-Term Liabilities:
Total Liabilities:
Equity:
Common Stock & APIC:
Treasury Stock:
Retained Earnings:
Accumulated Other Comprehensive Income:
Total Shareholders' Equity:
Noncontrolling Interests:
Total Equity:
7,395
5,089
36,437
3,091
52,012
45,347
3,486
6,682
408
55,923
$
109,535
3,929
63,967
646
68,542
2,705
71,247
Total Liabilities & Equity:

Balance Check:
180,782
OK!

Cash Flow Statement - Wal-Mart Stores, Inc.
Net Income:
Adjustments to Reconcile Net Income:
Depreciation & Amortization:
Goodwill Impairment:
Deferred Income Taxes:
Changes in Operating Assets & Liabilities:
Accounts Receivable, Net:
Prepaid Expenses & Other:
Inventory:
Accounts Payable:
Accrued Liabilities & Income Taxes:
Net Cash Provided by Operating Activities:
Historical
1/31/2011
$
15,959
7,641
651
(733)
1,087
(3,205)
2,676
(433)
23,643
Cash Flow from Investing:

Capital Expenditures, Net:
Sale of Property & Equipment:
Acquisitions, Net of Cash Acquired:
Acquisitions of Capital Lease Assets:
Other Investing Activities, Net:
Net Cash Used in Investing Activities:
(12,699)
489
(202)
219
(12,193)
Cash Flow from Financing:

Net Change In Short-Term Borrowings:
Proceeds From Issuance Of Long-Term Debt:
Payments Of Long-Term Debt:
Common Stock Cash Dividends:
Common Stock Issued:
Common Stock Repurchased:
Payment Of Capital Lease Obligations
Other Financing Activities, Net:
Net Cash Used in Financing Activities:
503
11,396
(4,080)
(4,437)
(14,776)
(363)
(271)
(12,028)
Effect of Exchange Rates:

Net Change in Cash:
Beginning Cash Balance:
Ending Cash Balance:
$
$
66
(512)
7,907
7,395

Operating Model Assumptions - Wal-Mart Stores, Inc.
1/31/2010
Historical
1/31/2011
Days in Year:
365
Effective Cash Interest Rate:

Effective Debt Interest Rate:
2.7%
4.4%
Accounts Receivable % Sales:

Accounts Receivable Days:
Inventory % COGS:
Prepaid Expenses % OpEx:
1.2%
4.4
11.6%
3.8%
Accounts Payable % COGS:

Accounts Payable Days:
Accrued Liabilities % OpEx:
10.7%
39.0
23.0%
Accrued Income Taxes % Total Taxes:
2.1%
Depreciation & Amortization % Revenue:

Deferred Income Taxes % Total Taxes:
1.8%
8.6%
Capital Expenditures % Revenue:
3.0%
Dividends Per Common Share:

Growth in Dividends Per Share:
Basic Shares Outstanding:
Diluted Shares Outstanding:
1.09
1.21
10.9%
3,656.0
3,670.0
Effective Tax Rate:

Blue indicates hard-coded numbers.
Black indicates formulas and text.
Green indicates links from other worksheets.
Labels for Public Company Comparables:

Trailing Twelve Months:
Forward Year 1:
Forward Year 2:
Forward Year 3:
1/31/2012
$
$
446,950
1/31/2013
$
264,186 $
1.5 %
626,686
421.56 $
471,317
Projected
1/31/2015
1/31/2014
$
268,413 $
1.6 %
636,713
421.56 $
493,709
272,439 $
1.5 %
646,264
421.56 $
515,675
1/31/2016
$
276,526 $
1.5 %
655,958
421.56 $
534,773
280,397
1.4 %
665,141
421.56
1.6 %
1.6 %
1.6 %
1.4 %
1.6 %
1.7 %
1.6 %
1.2 %
1.5 %
1.7 %
1.5 %
1.0 %
1.5 %
1.8 %
1.5 %
0.8 %
1.4 %
1.9 %
1.4 %
(0.0%)
(0.0%)
(0.0%)
0.0 %
0.0 %
0.0 %
0.0 %
(0.1%)
0.0 %
0.1 %
0.0 %
(0.1%)
0.0 %
0.1 %
0.0 %
(0.2%)
0.0 %
0.2 %
0.0 %
157,874 $
10.7 %
390,718
404.06 $
173,148 $
9.7 %
418,068
414.16 $
125,873 $
15.2 %
328,887
382.72 $
142,614 $
13.3 %
361,776
394.21 $
186,290
7.6 %
443,152
420.37
14.7 %
14.7 %
14.7 %
9.0 %
10.0 %
11.0 %
10.0 %
7.0 %
8.0 %
10.0 %
8.0 %
5.0 %
7.0 %
9.0 %
7.0 %
5.0 %
6.0 %
7.0 %
6.0 %
0.4 %
0.4 %
0.4 %
2.0 %
3.0 %
3.5 %
3.0 %
2.0 %
2.5 %
3.0 %
2.5 %
1.0 %
2.5 %
3.0 %
2.5 %
1.0 %
1.5 %
2.0 %
1.5 %
53,795 $
8.8 %
81,586
659.37 $
57,308 $
6.5 %
81,994
698.93 $
60,414 $
5.4 %
82,322
733.87 $
63,019 $
4.3 %
82,569
763.23 $
65,104
3.3 %
82,817
786.13
0.5 %
0.5 %
0.5 %
0.4 %
0.5 %
0.7 %
0.5 %
0.3 %
0.4 %
0.6 %
0.4 %
0.2 %
0.3 %
0.5 %
0.3 %
0.2 %
0.3 %
0.5 %
0.3 %
8.3 %
8.3 %
8.3 %
4.0 %
6.0 %
8.0 %
6.0 %
3.5 %
5.0 %
7.0 %
5.0 %
3.0 %
4.0 %
6.0 %
4.0 %
2.0 %
3.0 %
5.0 %
3.0 %
3,096
2,982
2,982
2,982
2,982
Historical
1/31/2012
$
446,950 $
6.0 %
335,127
75.0 %
1/31/2013
471,317 $
5.5 %
352,638
74.8 %
1/31/2014
493,709 $
4.8 %
369,391
74.8 %
Projected
1/31/2015
515,675 $
4.4 %
385,826
74.8 %
1/31/2016
534,773
3.7 %
400,116
74.8 %
111,823
25.0 %
118,679
25.2 %
124,318
25.2 %
129,849
25.2 %
134,658
25.2 %
85,265
19.1 %
90,408
19.2 %
94,703
19.2 %
98,916
19.2 %
102,580
19.2 %
26,558
162
(2,322)
24,398
7,944
32.6 %
28,272
131
(2,137)
26,265
8,405
32.0 %
29,615
203
(2,274)
27,544
8,814
32.0 %
30,932
216
(2,283)
28,865
9,237
32.0 %
32,078
318
(2,634)
29,761
9,524
32.0 %
16,454 $
(688)
15,766 $
17,861 $
(646)
17,215 $
18,730 $
(646)
18,084 $
19,629 $
(646)
18,983 $
20,238
(646)
19,592
3,474.00
4.54 $
3,364.80
5.12 $
3,255.60
5.55 $
3,146.40
6.03 $
3,037.20
6.45
34,688 $
7.8 %
26,558 $
5.9 %
36,827 $
7.8 %
28,272 $
6.0 %
38,576 $
7.8 %
29,615 $
6.0 %
40,293 $
7.8 %
30,932 $
6.0 %
41,785
7.8 %
32,078
6.0 %
$
$
Historical
1/31/2012
6,550
5,937
40,714
1,774
54,975
1/31/2013
109,603
20,651
2,721
5,456
138,431
10,157
5,957
41,820
2,658
60,592
Projected
1/31/2015
1/31/2014
114,731
20,651
2,721
5,912
144,015
10,806
6,257
43,806
2,784
63,654
120,127
20,651
2,721
6,368
149,867
12,717
6,535
45,755
2,908
67,916
1/31/2016
125,788
20,651
2,721
6,824
155,984
13,553
6,777
47,450
3,016
70,796
131,678
20,651
2,721
7,280
162,330
193,406
204,606
213,521
223,900
233,126
4,047
36,608
18,180
1,164
59,999
4,797
38,009
20,055
252
63,113
5,547
39,924
21,007
264
66,743
6,297
41,701
21,942
277
70,217
7,047
43,245
22,755
286
73,332
46,045
3,335
7,862
404
57,646
$
117,645
49,070
2,980
8,778
404
61,232
$
4,034
68,691
(1,410)
71,315
4,446
75,761 $
124,346
48,902
2,625
9,739
404
61,670
$
4,034
(8,000)
80,578
(1,443)
75,169
5,092
80,261 $
128,414
49,975
2,270
10,747
404
63,396
$
4,034
(16,000)
92,812
(1,476)
79,370
5,738
85,108 $
133,612
50,225
1,915
11,785
404
64,329
$
4,034
(24,000)
105,379
(1,509)
83,904
6,384
90,288 $
137,661
4,034
(32,000)
117,942
(1,542)
88,434
7,030
95,464
193,406
OK!
204,606
OK!
213,521
OK!
223,900
OK!
233,126
OK!
Historical
1/31/2012
$
16,454
1/31/2013
$
8,130
1,050
$
$
17,861
Projected
1/31/2015
1/31/2014
$
8,555
916
18,730
8,962
961
19,629
1/31/2016
$
9,360
1,007
20,238
9,707
1,038
(796)
398
(3,727)
2,687
59
24,255
(20)
(884)
(1,106)
1,401
963
27,687
(300)
(126)
(1,987)
1,915
965
29,119
(278)
(124)
(1,949)
1,776
947
30,368
(242)
(108)
(1,695)
1,544
821
31,304
(13,510)
580
(3,548)
(131)
(16,609)
(14,217)
535
(500)
44
(14,139)
(14,893)
535
(500)
44
(14,814)
(15,555)
535
(500)
44
(15,477)
(16,132)
535
(500)
44
(16,053)
3,019
5,050
(4,584)
(5,048)
(6,298)
(355)
(242)
(8,458)
750
5,000
(1,975)
(5,328)
(8,000)
(355)
(9,908)
750
5,000
(5,168)
(5,850)
(8,000)
(355)
(13,623)
750
5,000
(3,927)
(6,416)
(8,000)
(355)
(12,948)
750
5,000
(4,750)
(7,028)
(8,000)
(355)
(14,383)
(33)
(845) $
7,395
6,550 $
(33)
3,607 $
6,550
10,157 $
(33)
649 $
10,157
10,806 $
(33)
1,911 $
10,806
12,717 $
(33)
836
12,717
13,553
Historical
1/31/2012
1/31/2013
1/31/2014
Projected
1/31/2015
1/31/2016
365
366
365
365
365
2.5%
4.3%
2.0%
4.0%
2.0%
4.0%
2.0%
4.0%
2.5%
4.5%
1.3%
4.8
12.1%
2.1%
1.3%
4.6
11.9%
2.9%
1.3%
4.6
11.9%
2.9%
1.3%
4.6
11.9%
2.9%
1.3%
4.6
11.9%
2.9%
10.9%
39.9
21.3%
10.8%
39.4
22.2%
10.8%
39.4
22.2%
10.8%
39.4
22.2%
10.8%
39.4
22.2%
14.7%
3.0%
3.0%
3.0%
3.0%
1.8%
13.2%
1.8%
10.9%
1.8%
10.9%
1.8%
10.9%
1.8%
10.9%
3.0%
3.0%
3.0%
3.0%
3.0%
1.46 $
20.7%
3,460.0
3,474.0
1.59 $
8.9%
3,350.8
3,364.8
1.80 $
13.5%
3,241.6
3,255.6
2.05 $
13.5%
3,132.4
3,146.4
2.32
13.5%
3,023.2
3,037.2
32%
rksheets.
TTM
1/31/2013
1/31/2014
1/31/2015
1/31/2017
$
$
551,404
284,323
1.4 %
674,453
421.56
0.6 %
1.4 %
2.0 %
1.4 %
(0.2%)
0.0 %
0.2 %
0.0 %
$
197,561
6.1 %
465,310
424.58
4.0 %
5.0 %
6.0 %
5.0 %
0.5 %
1.0 %
1.5 %
1.0 %
$
66,539
2.2 %
82,982
801.85
0.1 %
0.2 %
0.4 %
0.2 %
1.0 %
2.0 %
4.0 %
2.0 %
$
2,982
1/31/2017
$
551,404
3.1 %
412,559
74.8 %
138,845
25.2 %
105,770
19.2 %
33,076
339
(2,663)
30,751
9,840
32.0 %
$
$
20,911
(646)
20,265
2,928.00
6.92
$
$
43,084
7.8 %
33,076
6.0 %
1/31/2017
17,713
6,969
48,926
3,109
76,717
137,768
20,651
2,721
7,736
168,876
$
245,593
7,797
44,468
23,462
295
76,023
54,095
1,560
12,858
404
68,917
$
144,940
4,034
(40,000)
130,519
(1,575)
92,978
7,676
100,654
245,593
OK!
1/31/2017
$
20,911
10,009
1,073
(192)
(94)
(1,476)
1,223
717
32,171
(16,633)
535
(500)
44
(16,555)
750
5,000
(1,130)
(7,688)
(8,000)
(355)
(11,423)
$
$
(33)
4,160
13,553
17,713
1/31/2017
366
2.5%
4.5%
1.3%
4.6
11.9%
2.9%
10.8%
39.4
22.2%
3.0%
1.8%
10.9%
3.0%
$
2.64
13.5%
2,914.0
2,928.0
Valuation Summary - Wal-Mart Stores, Inc.

Valuation Statistics - Wal-Mart Stores, Inc.
Methodology Name
Public Company Comparables:
TTM TEV / Revenue:
01/31/2013 TEV / Revenue:
TTM TEV / EBITDA:
01/31/2013 TEV / EBITDA:
01/31/2014 TEV / EBITDA:
TTM Pro-Forma P/E:
01/31/2013 Pro-Forma P/E:
Wal-Mart Stores, Inc. - Range of Valuation Multiples
Maximum
Multiple
75th
Percentile
Multiple
1.2 x
1.1 x
1.0 x
11.3 x
10.5 x
9.6 x
25.3 x
22.3 x
20.1 x
1.0 x
0.9 x
0.8 x
10.7 x
9.8 x
9.0 x
21.9 x
17.8 x
15.6 x
Discounted Cash Flow Analysis:

5.0% - 7.0% Discount Rate and 0.8% - 2.8% Terminal FCF Growth Rate:
Median
Multiple
25th
Percentile
Multiple
Minimum
Multiple
0.8 x
0.8 x
0.8 x
9.2 x
8.6 x
8.1 x
17.7 x
15.1 x
13.7 x
0.7 x
0.7 x
0.6 x
7.2 x
6.9 x
6.7 x
13.4 x
13.3 x
12.4 x
0.4 x
0.4 x
0.4 x
4.8 x
4.7 x
4.7 x
9.7 x
11.1 x
10.1 x
Wal-Mart Stores, Inc. - Implied Per Share Value Range

Applicable
Figure
446,950
471,317
493,709
34,688
36,827
38,576
4.54
5.12
5.55
Minimum
Multiple
25th
Percentile
Multiple
Median
Multiple
75th
Percentile
Multiple
Maximum
Multiple
38.79 $
37.78
35.84
33.50
35.37
37.00
44.11
56.97
56.16
71.54 $
73.60
75.56
57.17
58.35
59.34
60.98
67.82
68.94
88.73 $
90.55
92.71
77.25
76.55
74.62
80.54
77.31
75.84
107.61 $
106.87
105.89
91.51
89.41
84.90
99.55
90.96
86.72
145.44
140.80
133.69
97.74
96.36
92.26
114.75
114.27
111.46
63.27 $
76.49 $
95.90 $
127.21 $
186.29
Wal-Mart Valuation - Range of Implied

Public Company
Comparables:
TTM TEV / Revenue:
TTM TEV / EBITDA:
01/31/2013 TEV / EBITDA:
01/31/2014 TEV / EBITDA:
TTM Pro-Forma P/E:
Discounted Cash Flow

Analysis:
$0.00
$20.00
TTM Pro-Forma P/E:
01/31/2014 TEV / EBITDA:
01/31/2013 TEV / EBITDA:
TTM TEV / EBITDA:
TTM TEV / Revenue:
$40.00
$60.00
Min
$ 63.27
56.16
56.97
44.11
37.00
35.37
33.50
35.84
37.78
38.79
$80.00
Range of Implied Per Share Values
40.00
75th to Max
Median to 75th
25th to Median
Min to 25th
Column N
$60.00
$80.00
$100.00 $120.00 $140.00 $160.00 $180.00 $200.00
25th
Median
75th
Max
Min Point 25th Point Median Poi75th Point
$ 76.49 $ 95.90 $ 127.21 $ 186.29 $ 63.27 $ 13.22 $ 19.41 $ 31.31
68.94
67.82
60.98
59.34
58.35
57.17
75.56
73.60
71.54
75.84
77.31
80.54
74.62
76.55
77.25
92.71
90.55
88.73
86.72
90.96
99.55
84.90
89.41
91.51
105.89
106.87
107.61
111.46
114.27
114.75
92.26
96.36
97.74
133.69
140.80
145.44
56.16
56.97
44.11
37.00
35.37
33.50
35.84
37.78
38.79
12.78
10.86
16.87
22.34
22.98
23.67
39.72
35.82
32.75
6.90
9.49
19.56
15.27
18.20
20.08
17.15
16.95
17.19
10.89
13.64
19.01
10.28
12.86
14.26
13.18
16.32
18.88
Max Max
$ 59.07
24.74
23.31
15.21
7.37
6.95
6.23
27.80
33.93
37.83
Comparable Public Companies - Diversified US-Based Retailers with Greater Than $10 Billion in TTM Revenue
Operating Statistics
Capitalization
Share
Equity
Enterprise
Price
Value
Value
$
100.73 $
44,680 $
41,365
63.12
42,987
59,676
46.10
11,342
14,228
46.34
15,961
18,453
Maximum:
75th Percentile:
Median:
25th Percentile:
Minimum:
Valuation Statistics
Capitalization
Share
Equity
Enterprise
Price
Value
Value
$
100.73 $
44,680 $
41,365
63.12
42,987
59,676
46.10
11,342
14,228
46.34
15,961
18,453
Company Name
Costco Wholesale Corporation
Target Corporation
Kohl's Corporation
Dollar General Corp.
Company Name
Target Corporation
Kohl's Corporation
Maximum:
75th Percentile:
Median:
25th Percentile:
Minimum:
100.73 $
72.52
54.73
46.28
46.10
73.26
$ 252,188
100.73 $
72.52
54.73
46.28
46.10
73.26
44,680 $
43,410
29,474
14,806
11,342
$ 303,915
44,680 $
43,410
29,474
14,806
11,342
$ 252,188
59,676
45,943
29,909
17,397
14,228
Revenue
1/31/2013
$
106,560
73,301
19,220
16,080
1/31/2014
$
115,890
76,050
19,500
17,650
99,137
77,183
44,335
17,805
14,807
106,560
81,616
46,261
18,435
16,080
$ 446,950
471,317
TTM
99,137
69,865
18,804
14,807
115,890
86,010
47,775
19,038
17,650
493,709
Enterprise Value /
Revenue
TTM
1/31/2013
1/31/2014
0.4 x
0.4 x
0.4 x
0.9 x
0.8 x
0.8 x
0.8 x
0.7 x
0.7 x
1.2 x
1.1 x
1.0 x
TTM
3,667
7,453
2,936
1,766
7,453
4,614
3,302
2,644
1,766
EBITDA
1/31/2013
$
3,942
7,820
3,001
1,918
1/31/2014
$
4,287
8,113
3,045
2,105
34,688 $
7,820
4,911
3,471
2,730
1,918
36,827 $
TTM
3.98
4.30
4.74
2.23
8,113
5,243
3,666
2,810
2,105
$
$
4.74
4.41
4.14
3.54
2.23
38,576
4.78
Enterprise Value /
EBITDA
TTM
1/31/2013
1/31/2014
11.3 x
10.5 x
9.6
8.0 x
7.6 x
7.4
4.8 x
4.7 x
4.7
10.4 x
9.6 x
8.8
x
x
x
x
TTM
25.3
14.7
9.7
20.8
EPS
1/31/2013
$
4.51
4.52
4.14
2.85
1/31/2014
$
5.02
4.79
4.56
3.28
4.52
4.51
4.33
3.82
2.85
5.02
4.85
4.68
4.24
3.28
5.12
5.55
P / E Multiple
1/31/2013
x
22.3 x
x
14.0 x
x
11.1 x
x
16.3 x
1/31/2014
20.1 x
13.2 x
10.1 x
14.1 x
59,676
45,943
29,909
17,397
14,228
1.2 x
1.0 x
0.8 x
0.7 x
0.4 x
1.1 x
0.9 x
0.8 x
0.7 x
0.4 x
1.0 x
0.8 x
0.8 x
0.6 x
0.4 x
11.3 x
10.7 x
9.2 x
7.2 x
4.8 x
10.5 x
9.8 x
8.6 x
6.9 x
4.7 x
9.6 x
9.0 x
8.1 x
6.7 x
4.7 x
25.3 x
21.9 x
17.7 x
13.4 x
9.7 x
22.3 x
17.8 x
15.1 x
13.3 x
11.1 x
20.1 x
15.6 x
13.7 x
12.4 x
10.1 x
$ 303,915
0.7 x
0.6 x
0.6 x
8.8 x
8.3 x
7.9 x
15.3 x
14.3 x
13.2 x
COST
Old Partial
Revenue:
COGS:
Gross Profit:
Operating Expenses:
Other Income / (Expense):
Pre-Tax Income:
Taxes:
Net Income:
Amortization:
Depreciation:
Non-Recurring Charges:
Tax Rate:
Net Income:
EPS:
EBITDA:
EBIT:
$0
$0
$0
Calendarization
New Partial
FY
$99,137
$86,823
$0
$12,314
$9,555
$8
$0
$2,767
$1,000
$0
$1,767
$259
$649
$0
TTM
$99,137
$86,823
$12,314
$9,555
$8
$2,767
$1,000
$1,767
$259
$649
$0
35%
$0
$0
$1,767
$1,767
$3.98
$0
$0
$0
$0
$3,667
$2,759
$3,667
$2,759
Balance Sheet Data

Debt & Capital Leases:
Preferred Stock:
$4,854
$1,382
$0
$157
Equity Research Projections
1/31/2013
1/31/2014
1/31/2015
Bank:
NA
COST
Date:
Revenue:
EBITDA:
EBIT:
EPS:
2/27/2013
$106,560
$3,942
$2,966
$4.51
$115,890
$4,287
$3,225
$5.02
NA
NA
NA
NA
COST
Diluted Shares Calculation

Common Shares:
Options:
$100.73
432.42
Total
1.23
1.70
0.23
9.26
0.00
0.00
0.00
0.00
Strike
35.95
43.77
46.19
$0.00
$0.00
$0.00
$0.00
Total Diluted Shares:
Dilution
0.79
0.96
0.12
9.26
0.00
0.00
0.00
0.00
0.00
443.56
Valuation Metrics
Equity Value:
Enterprise Value:
Beta:
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
$44,680
$41,365
0.69
TTM
0.4
11.3
15.0
25.3
x
x
x
x
Valuation Multiples
1/31/2013
1/31/2014
1/31/2015
0.4 x
0.4 x
N/A
10.5 x
9.6 x
N/A
13.9 x
12.8 x
N/A
22.3 x
20.1 x
N/A
Lookup Variables
COST
01/31/2013
01/31/2013
01/31/2013
01/31/2013
Revenue:
EBITDA:
EBIT:
EPS:
$106,560
$3,942
$2,966
$4.51
01/31/2014
01/31/2014
01/31/2014
01/31/2014
Revenue:
EBITDA:
EBIT:
EPS:
$115,890
$4,287
$3,225
$5.02
01/31/2015
01/31/2015
01/31/2015
01/31/2015
Revenue:
EBITDA:
EBIT:
EPS:
TTM
TTM
TTM
TTM
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
NA
NA
NA
NA
0.4
11.3
15.0
25.3
x
x
x
x
01/31/2013
01/31/2013
01/31/2013
01/31/2013
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
0.4
10.5
13.9
22.3
x
x
x
x
01/31/2014
01/31/2014
01/31/2014
01/31/2014
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
0.4
9.6
12.8
20.1
x
x
x
x
COST
01/31/2015
01/31/2015
01/31/2015
01/31/2015
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
N/A
N/A
N/A
N/A
Target Corporation
Old Partial
Revenue:
COGS:
Gross Profit:
Operating Expenses:
Pre-Tax Income:
Taxes:
Net Income:
Amortization:
Depreciation:
Tax Rate:
Net Income:
EPS:
EBITDA:
EBIT:
$0
$0
$0
Calendarization
New Partial
FY
$69,865
$47,860
$0
$22,005
$16,683
($866)
$0
$4,456
$1,527
$0
$2,929
$24
$2,107
$0
$0
$0
$2,929
$0
$0
$0
$0
$7,453
$5,322
Balance Sheet Data

Preferred Stock:
1/31/2013
1/31/2014
1/31/2015
Bank:
Target Corporation
Date:
Revenue:
EBITDA:
EBIT:
EPS:
$73,301
$7,820
$5,584
$4.52
$76,050
$8,113
$5,793
$4.79
$81,440
$8,688
$6,204
$5.75
Target Corporation

Common Shares:
Options:
Total
38.15
1.55
1.61
0.00
0.00
0.00
0.00
0.00
0.00
Strike
$47.59
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

Valuation Metrics
Equity Value:
Enterprise Value:
Beta:
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
TTM
0.9
8.0
11.2
14.7
x
x
x
x
Valuation Multiples
1/31/2013
1/31/2014
0.8 x
0.8 x
7.6 x
7.4 x
10.7 x
10.3 x
14.0 x
13.2 x
Lookup Variables
Target Corporation
01/31/2013
01/31/2013
01/31/2013
01/31/2013
Revenue:
EBITDA:
EBIT:
EPS:
01/31/2014
01/31/2014
01/31/2014
01/31/2014
Revenue:
EBITDA:
EBIT:
EPS:
01/31/2015
01/31/2015
01/31/2015
01/31/2015
Revenue:
EBITDA:
EBIT:
EPS:
TTM
TTM
TTM
TTM
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
01/31/2013
01/31/2013
01/31/2013
01/31/2013
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
01/31/2014
01/31/2014
01/31/2014
01/31/2014
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
Target Corporation
01/31/2015
01/31/2015
01/31/2015
01/31/2015
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
TGT
Target Corporation
Calendarization
Revenue:
COGS:
Gross Profit:
Operating Expenses:
Pre-Tax Income:
Taxes:
Net Income:
Amortization:
Depreciation:
Tax Rate:
Net Income:
EPS:
TTM
$69,865
$47,860
$22,005
$16,683
($866)
$4,456
$1,527
$2,929
$24
$2,107
$0
35%
$2,929
$4.30
EBITDA:
EBIT:
$7,453
$5,322
Balance Sheet Data

Preferred Stock:
$794
$17,483
$0
$0

Bank:
NA
TGT
Target Corporation
Date:
Revenue:
EBITDA:
EBIT:
EPS:
2/27/2013
TGT
Target Corporation

Common Shares:
Options:
$63.12
668.49
Dilution
9.39
1.55
1.61
0.00
0.00
0.00
0.00
0.00
0.00
681.04
Valuation Metrics
Equity Value:
Enterprise Value:
Beta:
$42,987
$59,676
0.92
Valuation Multiples
1/31/2015
0.7 x
6.9 x
9.6 x
11.0 x
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
Lookup Variables
TGT
Target Corporation
01/31/2013
01/31/2013
01/31/2013
01/31/2013
Revenue:
EBITDA:
EBIT:
EPS:
$73,301
$7,820
$5,584
$4.52
01/31/2014
01/31/2014
01/31/2014
01/31/2014
Revenue:
EBITDA:
EBIT:
EPS:
$76,050
$8,113
$5,793
$4.79
01/31/2015
01/31/2015
01/31/2015
01/31/2015
Revenue:
EBITDA:
EBIT:
EPS:
$81,440
$8,688
$6,204
$5.75
TTM
TTM
TTM
TTM
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
0.9
8.0
11.2
14.7
x
x
x
x
01/31/2013
01/31/2013
01/31/2013
01/31/2013
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
0.8
7.6
10.7
14.0
x
x
x
x
01/31/2014
01/31/2014
01/31/2014
01/31/2014
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
0.8
7.4
10.3
13.2
x
x
x
x
TGT
Target Corporation
01/31/2015
01/31/2015
01/31/2015
01/31/2015
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
0.7
6.9
9.6
11.0
x
x
x
x
KSS
Kohl's Corporation
Old Partial
Revenue:
COGS:
Gross Profit:
Operating Expenses:
Pre-Tax Income:
Taxes:
Net Income:
Amortization:
Depreciation:
Tax Rate:
Net Income:
EPS:
EBITDA:
EBIT:
$0
$0
$0
Calendarization
New Partial
FY
$18,804
$11,625
$0
$7,179
$5,021
($299)
$0
$1,859
$692
$0
$1,167
$424
$354
$0
TTM
$18,804
$11,625
$7,179
$5,021
($299)
$1,859
$692
$1,167
$424
$354
$0
35%
$0
$0
$1,167
$1,167
$4.74
$0
$0
$0
$0
$2,936
$2,158
$2,936
$2,158
Balance Sheet Data

Preferred Stock:
$1,358
$4,244
$0
$0
1/31/2013
1/31/2014
1/31/2015
Bank:
NA
KSS
Kohl's Corporation
Date:
Revenue:
EBITDA:
EBIT:
EPS:
2/27/2013
$19,220
$3,001
$2,206
$4.14
$19,500
$3,045
$2,238
$4.56
NA
NA
NA
NA
KSS
Kohl's Corporation

Common Shares:
Options:
$46.10
243.25
Total
1.45
0.12
1.85
1.48
2.18
2.15
3.65
1.24
1.95
Strike
$29.54
$37.35
$41.58
$43.06
$48.25
$51.35
$57.65
$68.70
Dilution
0.52
0.02
0.18
0.10
0.00
0.00
0.00
0.00
1.95
246.02
Valuation Metrics
Equity Value:
Enterprise Value:
Beta:
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
$11,342
$14,228
0.85
TTM
0.8
4.8
6.6
9.7
x
x
x
x
Valuation Multiples
1/31/2013
1/31/2014
1/31/2015
0.7 x
0.7 x
N/A
4.7 x
4.7 x
N/A
6.5 x
6.4 x
N/A
11.1 x
10.1 x
N/A
Lookup Variables
KSS
Kohl's Corporation
01/31/2013
01/31/2013
01/31/2013
01/31/2013
Revenue:
EBITDA:
EBIT:
EPS:
$19,220
$3,001
$2,206
$4.14
01/31/2014
01/31/2014
01/31/2014
01/31/2014
Revenue:
EBITDA:
EBIT:
EPS:
$19,500
$3,045
$2,238
$4.56
01/31/2015
01/31/2015
01/31/2015
01/31/2015
Revenue:
EBITDA:
EBIT:
EPS:
TTM
TTM
TTM
TTM
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
NA
NA
NA
NA
0.8
4.8
6.6
9.7
x
x
x
x
01/31/2013
01/31/2013
01/31/2013
01/31/2013
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
0.7
4.7
6.5
11.1
x
x
x
x
01/31/2014
01/31/2014
01/31/2014
01/31/2014
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
0.7
4.7
6.4
10.1
x
x
x
x
KSS
Kohl's Corporation
01/31/2015
01/31/2015
01/31/2015
01/31/2015
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
N/A
N/A
N/A
N/A
Old Partial
Revenue:
COGS:
Gross Profit:
Operating Expenses:
Pre-Tax Income:
Taxes:
Net Income:
Amortization:
Depreciation:
Tax Rate:
Net Income:
EPS:
EBITDA:
EBIT:
$0
$0
$0
Calendarization
New Partial
FY
$14,807
$10,109
$0
$4,698
$3,207
($266)
$0
$1,225
$459
$0
$767
$32
$244
$0
$0
$0
$767
$0
$0
$0
$0
$1,766
$1,491
Balance Sheet Data

Preferred Stock:
1/31/2013
1/31/2014
1/31/2015
Bank:
Date:
Revenue:
EBITDA:
EBIT:
EPS:
$16,080
$1,918
$1,619
$2.85
$17,650
$2,105
$1,777
$3.28
NA
NA
NA
NA

Common Shares:
Options:
Total
4.26
3.97
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Strike
$10.55
$10.75
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

Valuation Metrics
Equity Value:
Enterprise Value:
Beta:
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
TTM
1.2
10.4
12.4
20.8
x
x
x
x
Valuation Multiples
1/31/2013
1/31/2014
1.1 x
1.0 x
9.6 x
8.8 x
11.4 x
10.4 x
16.3 x
14.1 x
Lookup Variables
01/31/2013
01/31/2013
01/31/2013
01/31/2013
Revenue:
EBITDA:
EBIT:
EPS:
01/31/2014
01/31/2014
01/31/2014
01/31/2014
Revenue:
EBITDA:
EBIT:
EPS:
01/31/2015
01/31/2015
01/31/2015
01/31/2015
Revenue:
EBITDA:
EBIT:
EPS:
TTM
TTM
TTM
TTM
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
01/31/2013
01/31/2013
01/31/2013
01/31/2013
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
01/31/2014
01/31/2014
01/31/2014
01/31/2014
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
01/31/2015
01/31/2015
01/31/2015
01/31/2015
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
DG
Calendarization
TTM
$14,807
$10,109
$4,698
$3,207
($266)
$1,225
$459
$767
$32
$244
$0
35%
Revenue:
COGS:
Gross Profit:
Operating Expenses:
Pre-Tax Income:
Taxes:
Net Income:
Amortization:
Depreciation:
Tax Rate:
Net Income:
EPS:
EBITDA:
EBIT:
Balance Sheet Data
Preferred Stock:
Calendarization
New Partial
$0
$0
$0
$0
$0
$0
$767
$2.23
$0
$0
$1,766
$1,491
$0
$0
$0
$0
Balance Sheet Data
$126
$2,618
$0
$0

Bank:
Old Partial
NA

1/31/2013
1/31/2014
DG
Date:
Revenue:
EBITDA:
EBIT:
EPS:
2/27/2013
$ 471,317
36,827
28,272
$5.12
$ 493,709
38,576
29,615
$5.55
DG

Common Shares:
Options:

$46.34
338.09
Dilution
3.29
3.05
0.00
0.00
0.00
0.00
0.00
0.00
0.00
344.43
Total
20.15
30.94
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Valuation Metrics
Equity Value:
Enterprise Value:
Beta:
Valuation Metrics
$15,961
$18,453
0.10
Valuation Multiples
1/31/2015
N/A
N/A
N/A
N/A
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
Lookup Variables
TTM
0.7
8.8
11.4
15.3
x
x
x
x
Valuation Multiples
1/31/2013
0.6 x
8.3 x
10.7 x
14.3 x
Lookup Variables
DG
01/31/2013
01/31/2013
01/31/2013
01/31/2013
Revenue:
EBITDA:
EBIT:
EPS:
$16,080
$1,918
$1,619
$2.85
01/31/2014
01/31/2014
01/31/2014
01/31/2014
Revenue:
EBITDA:
EBIT:
EPS:
$17,650
$2,105
$1,777
$3.28
01/31/2015
01/31/2015
01/31/2015
01/31/2015
Revenue:
EBITDA:
EBIT:
EPS:
TTM
TTM
TTM
TTM
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
NA
NA
NA
NA
1.2
10.4
12.4
20.8
x
x
x
x
01/31/2013
01/31/2013
01/31/2013
01/31/2013
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
1.1
9.6
11.4
16.3
x
x
x
x
01/31/2014
01/31/2014
01/31/2014
01/31/2014
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
1.0
8.8
10.4
14.1
x
x
x
x
DG
01/31/2015
01/31/2015
01/31/2015
01/31/2015
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
N/A
N/A
N/A
N/A
WMT
Revenue:
COGS:
Gross Profit:
Operating Expenses:
Pre-Tax Income:
Taxes:
Net Income:
Amortization:
Depreciation:
Tax Rate:
Net Income:
EPS:
EBITDA:
EBIT:
Calendarization
FY
$ 446,950
335,127
$111,823
85,265
(2,160)
$24,398
7,944
$16,454
$0
8,130
$0
TTM
$446,950
$335,127
$111,823
$85,265
($2,160)
$24,398
$7,944
$16,454
$0
$8,130
$0
35%
$16,454
$16,454
$4.78
$34,688
$26,558
$34,688
$26,558
Balance Sheet Data

Preferred Stock:
Bank:
$6,550
$53,427
$0
$4,850
1/31/2015
NA
WMT
Date:
Revenue:
EBITDA:
EBIT:
EPS:
2/27/2013
$ 515,675
40,293
30,932
$6.03
WMT

Common Shares:
Options:
$73.26
3,404.54
Strike
$48.21
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Dilution
6.89
30.94
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3,442.37
Valuation Metrics
Equity Value:
Enterprise Value:
Beta:
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
$252,188
$303,915
0.36
Valuation Multiples
1/31/2014
1/31/2015
0.6 x
0.6 x
7.9 x
7.5 x
10.3 x
9.8 x
13.2 x
12.1 x
Lookup Variables
WMT
01/31/2013
01/31/2013
01/31/2013
01/31/2013
Revenue:
EBITDA:
EBIT:
EPS:
$471,317
$36,827
$28,272
$5.12
01/31/2014
01/31/2014
01/31/2014
01/31/2014
Revenue:
EBITDA:
EBIT:
EPS:
$493,709
$38,576
$29,615
$5.55
01/31/2015
01/31/2015
01/31/2015
01/31/2015
Revenue:
EBITDA:
EBIT:
EPS:
$515,675
$40,293
$30,932
$6.03
TTM
TTM
TTM
TTM
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
0.7
8.8
11.4
15.3
x
x
x
x
01/31/2013
01/31/2013
01/31/2013
01/31/2013
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
0.6
8.3
10.7
14.3
x
x
x
x
01/31/2014
01/31/2014
01/31/2014
01/31/2014
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
0.6
7.9
10.3
13.2
x
x
x
x
WMT
01/31/2015
01/31/2015
01/31/2015
01/31/2015
TEV / Revenue:
TEV / EBITDA:
TEV / EBIT:
Pro-Forma P/E:
0.6
7.5
9.8
12.1
x
x
x
x
Discounted Cash Flow Analysis

Wal-Mart Stores, Inc. - DCF Cash Flow Projections
Wal-Mart Stores, Inc. - Assumptions & Output
Revenue:
EBITDA:
Operating Income:
1/31/2013
1/31/2014
1/31/2015
1/31/2016
1/31/2017
Use Multiples Method?
$ 471,317
36,827
28,272
$ 493,709
38,576
29,615
$ 515,675
40,293
30,932
$ 534,773
41,785
32,078
$ 551,404
43,084
33,076
Discount Rate:
Less: Taxes:
Plus: Depreciation & Amortization:
Plus: Goodwill Impairment:
Plus: Deferred Income Taxes:
Change in Working Capital (from CFS):
Less: Capital Expenditures:
(9,047)
(9,477)
(9,898)
(10,265)
(10,584)
8,555
916
355
(14,217)
8,962
961
467
(14,893)
9,360
1,007
372
(15,555)
9,707
1,038
321
(16,132)
10,009
1,073
179
(16,633)
Terminal EBITDA Multiple:

Terminal Growth Rate:
Terminal Value:
Implied EBITDA Multiple:
PV of Terminal Value:
Sum of PV of Cash Flows:
Enterprise Value:
No
5.9%
Terminal Value % EV:

Unlevered Free Cash Flow
Present Value of Free Cash Flow
Projection Year:
Normal Mid-Year Convention Discount:
Free Cash Flow Growth Rate:
$
$
0.000
14,834
14,411
1.000
0.500
$
$
15,635
14,337
2.000
1.500
Terminal
Growth Rate
Wal-Mart Stores, Inc. - Net Present Value Sensitivity - Terminal EBITDA Multiples
Discount Rate
$103.34
4.5%
5.0%
5.5%
6.0%
6.5%
11.0 x $ 170.78 $ 140.13 $ 118.24 $ 101.81 $
89.04
10.0 x $ 170.78 $ 140.13 $ 118.24 $ 101.81 $
89.04
9.0 x $ 170.78 $ 140.13 $ 118.24 $ 101.81 $
89.04
8.0 x $ 170.78 $ 140.13 $ 118.24 $ 101.81 $
89.04
7.0 x $ 170.78 $ 140.13 $ 118.24 $ 101.81 $
89.04
6.0 x $ 170.78 $ 140.13 $ 118.24 $ 101.81 $
89.04
16,218
14,037
$
$
3.000
2.500
5.4 %
Wal-Mart Stores, Inc. - Net Present Value Sensitivity - Terminal Growth Rates
Discount Rate
$103.34
4.5%
5.0%
5.5%
6.0%
6.5%
2.8% $ 243.20 $ 186.29 $ 150.07 $ 125.00 $
106.61
2.3% $ 189.56 $ 152.72 $ 127.21 $ 108.51 $
94.21
1.8% $ 155.42 $ 129.48 $ 110.45 $
95.90 $
84.42
1.3% $ 131.79 $ 112.44 $
97.64 $
85.95 $
76.49
0.7% $ 114.46 $
99.40 $
87.52 $
77.89 $
69.95
0.2% $ 101.21 $
89.11 $
79.32 $
71.24 $
64.45
Terminal
EBITDA
Multiple
$
$
$
$
$
$
$
$
$
$
$
$
$
$
7.0%
78.82
78.82
78.82
78.82
78.82
78.82
$
$
4.000
3.500
3.7 %
7.0%
92.55
82.92
75.12
68.68
63.27
58.66
16,748
13,682
17,119
13,200
5.000
4.500
3.3 %
2.2 %
$
$
$
$
$
$
7.5%
81.45
73.78
67.44
62.12
57.58
53.67
$
$
$
$
$
$
8.0%
72.46
66.23
60.99
56.53
52.68
49.33
$
$
$
$
$
$
7.5%
70.47
70.47
70.47
70.47
70.47
70.47
$
$
$
$
$
$
8.0%
63.50
63.50
63.50
63.50
63.50
63.50
Enterprise Value:
Plus: Cash & Cash Equivalents:
Plus: Equity Interests:
Less: Debt & Capital Leases:
Less: Preferred Stock:
Less: Noncontrolling Interests:
Implied Equity Value:
Diluted Shares Outstanding:
Implied Share Price:
9.0 x
2.0%
442,330
10.3 x
341,064
69,667
410,731
83.0%
410,731
6,550
(53,427)
(4,850)
359,004
3,474
103.34
Discount Rate Calculations

Discount Rate Calculation - Assumptions
Risk-Free Rate:
Equity Risk Premium:
Interest Rate on Debt:
2.72%
5.00%
4.50%
Comparable Companies - Unlevered Beta Calculation

Levered
Equity
Name
Ticker
Beta
Debt
Value
COST
0.69 $
1,382 $
44,680
Target Corporation
TGT
0.92
17,483
42,987
Kohl's Corporation
KSS
0.85
4,244
11,342
DG
0.10
2,618
15,961
Tax Rate
35%
35%
35%
35%
Median
0.68
WMT
0.36
Wal-Mart Stores, Inc. - Levered Beta & WACC Calculation

Unlevered
Ticker
Beta
Unlevered
Beta
0.68
0.73
0.68
0.09
WMT
Cost of Equity Based on Comparables:

Cost of Equity Based on Historical Beta:
0.68
Debt
$ 53,427 $
Equity
Value
252,188
Tax Rate
35%
Levered
Beta
0.77
6.59%
4.52%
WACC = Cost of Equity * % Equity + Cost of Debt * % Debt * (1 - Tax Rate) + Cost of Preferred Stock * % Preferred Stock
WACC
5.95%

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Wal-Mart Stores, Inc.

- Operating Model and Valuation

Wal-Mart Stores, Inc. - Summary of Financial Statements

Cash Flow from Operations:

Wal-Mart Stores, Inc. - Valuation Multiples

Graphs and Analysis of Financial Model Output - Wal-Mart Stores, Inc.

Wal-Mart: Revenue vs. Gross Margins

Gross Profit Margin

Wal-Mart US Stores: Square Feet and Sales Per Square Foot

Total Square Feet

Total Square Feet, US Stores

Sales Per Square Foot

Sales Per Square Foot

Wal-Mart: Revenue, EBITDA, and Margins

Revenue and EBITDA

s Per Square Foot

Wal-Mart Stores, Inc. - Operating Model and Valuation

Standalone Operating Model - Assumptions - Wal-Mart Stores, Inc.

Wal-Mart Stores, Inc.

Wal-Mart Stores, Inc. - Operating Model and Valuation

US Stores - Sales ($MM):

US Stores - Square Feet - YoY Growth:

Int'l Stores - Square Feet - YoY Growth:

Int'l Stores - $ per Sq. Ft. - YoY Growth:

US Stores - $ per Sq. Ft. - YoY Growth:

Wal-Mart Stores, Inc. - Operating Model and Valuation

Other - $ per Sq. Ft. - YoY Growth:

Wal-Mart Stores, Inc. - Operating Model and Valuation

Sales, General & Administrative Expenses:

Wal-Mart Stores, Inc. - Operating Model and Valuation

Wal-Mart Stores, Inc. - Operating Model and Valuation

Total Liabilities & Equity:

Wal-Mart Stores, Inc. - Operating Model and Valuation

Cash Flow from Investing:

Cash Flow from Financing:

Effect of Exchange Rates:

Wal-Mart Stores, Inc. - Operating Model and Valuation

Effective Cash Interest Rate:

Accounts Receivable % Sales:

Accounts Payable % COGS:

Accrued Income Taxes % Total Taxes:

Depreciation & Amortization % Revenue:

Capital Expenditures % Revenue:

Dividends Per Common Share:

Wal-Mart Stores, Inc. - Operating Model and Valuation

Effective Tax Rate:

Labels for Public Company Comparables:

Wal-Mart Stores, Inc. - Operating Model and Valuation

Wal-Mart Stores, Inc. - Operating Model and Valuation

Wal-Mart Stores, Inc. - Operating Model and Valuation

Wal-Mart Stores, Inc. - Operating Model and Valuation

Wal-Mart Stores, Inc. - Operating Model and Valuation

Wal-Mart Stores, Inc. - Operating Model and Valuation

Wal-Mart Stores, Inc. - Operating Model and Valuation

Wal-Mart Stores, Inc. - Operating Model and Valuation

Wal-Mart Stores, Inc. - Operating Model and Valuation

Wal-Mart Stores, Inc. - Operating Model and Valuation

Wal-Mart Stores, Inc. - Operating Model and Valuation