Wal-Mart Stores Inc.

Wal-Mart Stores Inc. Monday, July 23, 2007

Posted by ei-forum in US Traded Stocks.
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Why are investors staying away from Wal-Mart (WMT)? Have the smear campaigns, bad publicity, class actions suits, etc…. managed to distract us from the fact that this is a great company with strong fundamentals that is selling at a big discount and close to a 52 week low?

Wal-Mart is the world’s largest discount retailer and is steadily growing in new markets abroad. Not only are the numbers extremely interesting but we also feel that the financial community and private investors are too focused on what is happening in the States and fail to see the global picture and most importantly, potential.

Some food for thought:

	Wal-Mart	Industry Average	S&P500
Price/Earnings	16,2	17,9	21,1
Price/Book	3,3	3,2	4,5
Price/Sales	0,6	0,6	3,0
Price/Cash Flow	10,9	11,9	14,9
Dividend Yield %	1,6	1,3	2,0
Price/Earnings	13,6	14,6	16,0
PEG Ratio	1,1	1,1	1,5
PEG Payback (Yrs)	7,5	7,7	NA

We know that fair value assessment is extremely tricky, however, according to Morningstar’s calculations, the stock is worth a least 60 USD. We are not going to try and give you our own estimate but at 48 USD, we feel that his stock is defiantly worth a closer look.

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