Welcome to GuruFocus Investment Space.

Please Join Us to share your investment ideas with more than 100,000 GuruFocus users.

Join      Log in

cm1750 Message

cm1750's Space » All messages

  • ecota 2011-02-02 18:36
    Hi cm1750,  
    thanks for reading and commenting on the Walmart valuation article.  You are correct - my DCF model is a back-of-the-envelope valuation; one that hopefully more often understates rather than overstates the value of a given stock like WMT.  The assumed 0% growth rate after five years is too harsh for the reasons you mentioned and you're right that the analyst consensus 5-year growth rate is for EPS not FCF.  I just wanted to assume a much lower growth rate for FCF to try and understate rather than overstate WMT's value.  You're right again for pointing out that I should consider FCF for an unlevered WMT - that was an oversimplification on my part.

    All the best,
    Eric Cota

    P.S. - I would've replied to you publicly in the comments to my article but gurufocus just recently contacted me for my articles and didn't give me a sign in for their site - I hope they comp me a membership going forward.
  • Margin of Safet 2010-12-21 10:12
    cm1750: Regarding PEP, I think it is currently worth roughly $71 so it is at a 9% discount now.

    I am using FCF/share for 2013 of $4.66 (= 84% of EPS) and app
    Hello CM,
    Thank you for sharing your calculation. How do you get to the 2013 FCF?
    Happy holidays,
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat