Walmart(US:WMT) Acquirersmultiple·2025-12-05 00:24Core Insights - Walmart Inc. is the world's largest retailer with over 10,500 stores globally, combining physical retail with a growing e-commerce platform [2] - The company's retail model focuses on high volume, competitive pricing, and efficient supply chain management, which enhances customer traffic and competitive advantages [3] - Walmart's omnichannel strategy is evolving, integrating in-store pickup, delivery, and digital services to boost higher-margin revenue streams like advertising and memberships [3][4] Financial Analysis - Forecasted Free Cash Flows (FCF) from 2025 to 2029 show a steady increase, with total present value of FCFs estimated at approximately $65.0 billion [5] - The terminal value, calculated using a perpetuity growth model, is estimated at $275.2 billion, leading to a present value of the terminal value of $171.0 billion [5] - The enterprise value is calculated at $236.0 billion, with net debt of $34 billion, resulting in an equity value of $202.0 billion [6] Valuation Metrics - The intrinsic value per share is estimated at approximately $25.57, while the current market price is around $109, indicating a margin of safety of -77% [6] - The discount rate used in the DCF analysis is 10%, with a terminal growth rate of 3% [6] - Despite a premium valuation, Walmart's stock trades above its intrinsic value under conservative DCF assumptions focused on free cash flow rather than revenue growth [7]