Course: Corporate Finance (Fin 440)

Section: 12
Group 4
Group Project: Financial analysis

Submitted to:
TASKIN SHAKIB (TKS)
Lecturer
Department of Accounting and Finance

Submitted by:
Faizan Mohammed Rahman 2021356630
Sayed Imtiaz Mahmud 1931505630
Jannatul Ferdousi 1921153030
Samiha Tahseen Reedita 2014332030
Md Sharful Islam 2013573630
Exclusive Summary

In this analysis, we looked at GP's financial ratios from 2020 to 2021. The organization, we discovered
many problems with sales, gross profit, operational profit, net profit, current assets, fixed assets, total
assets, shareholders' equity, and so on. Higher current ratios, quick ratios, gross profit margin, operational
profit margin, and net profit margin.
According to industry standards, Walmart's asset and inventory management is excellent. Gp employs
various cost-cutting measures in order to maximize profits. Gp, on the other hand, performs well in the
areas of fixed assets management, accounts receivable turnover, market to book ratio, inventory turnover,
and average collection period. Gp was unable to adequately manage their accounts payable and failed to
collect their accounts receivable on time, forcing them to borrow to cover operational costs, increasing
their debt ratio. We have also made pro forma income statement and balance sheet from the year 2020 to
2021 of both companies and calculated their WACC and forecasted free cash flows. We have analyzed
the valuation and investment situation of these companies.
Nonetheless, both firms are working hard to achieve their objectives. Walmart outperforms GP in terms
of profit and accounts payable and receivable management. We have tried to recommend some solutions
in terms of our understanding.
Overall, we did our best to give accurate data and conduct a thorough analysis of the ratios. We believe
that this research will help readers understand financial ratio analysis and how to compare a company's
financial situation to the industry average.

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 Table of Contents:

Executive Summary 1

Table of Contents 2

Introduction of Local Company: GP 3

Profitability ratio 4

Liquidity Ratio 9

Leverage Ratio 12

Market Ratio 14

Cash Conversion Cycle 16

Unlevered Beta 17

Pro forma income statement by using SGR 18

Pro forma income statement by using IGR 20

Weighted Average Cost of Capital of 22

Grameenphone
Introduction of Foreign Company: 25
Walmart
Free Cash Flow 27

Valuation 28

Recommendation 29

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 Introduction of Local Company:
Grameenphone

On March 26, 1997, Grameenphone started up its mission to provide Bangladesh's rural
population with network connectivity. Although infrastructure and technology have advanced
over time, Grameenphone's dedication to empowering societies has not changed. This is so that
people can be enabled to achieve anything, according to the ideology of Grameenphone. We can
help them in achieving their goals. To ensure the fastest and most comprehensive internet
coverage in the nation, we have installed the most 4G towers in Bangladesh. This was done in
order to confront actual issues that people deal with on a daily basis. Our networking-building
efforts don't end there; we've also started the Deep Sea Network to improve the lives of minority
groups like fishermen, for whom finding a network in the middle of the sea can literally mean
life or death. With the help of 4G, we want to advance in this way, expanding alongside the area.
According to revenue, service area, and subscriber base, Grameenphone Ltd. is Bangladesh's
largest mobile telecommunications provider. In the 900 MHz, 1800 MHz, and 2100 MHz
frequency bands, the company runs a digital mobile telecommunications network based on the
GSM standard. The primary shareholders in the shareholding structure are Telenor Mobile
Communications AS and Grameen Telecom.

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 Ratio Analysis
Profitability ratio
Gross profit margin:
Name of ratio formula 2020 2021

Gross profit margin Gross profit/Revenue 55.89% 55.05%

GROSS PROFIT MARGIN

2021 55.05%

2020 55.89%

54.60% 54.80% 55.00% 55.20% 55.40% 55.60% 55.80% 56.00%

2020 2021
Gross profit margin 55.89% 55.05%

In 2020, the gross profit margin was 55.89%; in 2021, it was 55.05%. It informs us that there has
been a slight decline, which is related to GP's rising cost of sales in 2021; as a result, the gross
profit margin has slightly decreased.

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Operating Profit Margin:
Name of ratio formula 2020 2021

Operating Profit Operating 45% 44%

Margin profit/Revenue

OPERATING PROFIT MARGIN

2021 44%

2020 45%

43% 44% 44% 44% 44% 44% 45% 45% 45% 45%

2020 2021
Operating Profit Margin 45% 44%

The operating profit margin is 45% in 2020 and 44% in 2021. The fact that there has been a slight
decrease indicates that GP's operating costs have increased in 2021, which is why the operating profit
margin has decreased.

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Net Profit Margin:
Name of ratio formula 2020 2021

Net Profit Margin Net profit/revenue 26% 23%

NET PROFIT MARGIN

2021 23%

2020 26%

21% 22% 23% 24% 25% 26% 27%

2020 2021
Net Profit Margin 26% 23%

In 2020, the net profit margin will be 26%; in 2021, it will be 23%. We can see that even though GP's
operating and gross profit margins declined in 2021, the net profit margin also dropped, indicating that
GP is much less efficient than expected at trying to turn sales into actual profits.

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Return on Assets:
Name of ratio formula 2020 2021

Return on Assets Net income/total 0.25 0.20

assets

RETURN ON ASSETS

2021 0.20

2020 0.25

0.00 0.05 0.10 0.15 0.20 0.25 0.30

2020 2021
Return on Assets 0.25 0.20

In 2020 and 2021, respectively, the return on assets is 0.25% and 0.20%. From the previous two years, it
is clear that GP was mismanaging their assets, which is why their return on assets fell in 2021.

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Return on Equity:
Name of ratio formula 2020 2021

Return on Equity Net 0.82 0.68

income/shareholders’
equity

RETURN ON EQUITY

2021 0.68

2020 0.82

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90

2020 2021
Return on Equity 0.82 0.68

The Return on Equity is 0.82% in 2020 and 0.68% in 2021. It once again reveals that GP has consistently
given its shareholders low returns, which is why their Return on Equity fell in 2021.

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Liquidity Ratio

Current Ratio:
Name of ratio formula 2020 2021

Current Ratio Total C.A./Total C.L. 0.129 0.115

CURRENT RATIO

2021 0.115

2020 0.129

0.105 0.11 0.115 0.12 0.125 0.13 0.135

2020 2021
Current Ratio 0.129 0.115

The year axis indicates that in 2020, the GP current ratio was 0.129. The current ratio was 0.115 in 2021.
This indicates that the company's current assets are only sufficient to cover 14% of its current liabilities,
which isn't very good.

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Quick Ratio:
Name of ratio formula 2020 2021

Quick Ratio (Cash+ Account 0.126 0.112

Receivable)/C.L.

QUICK RATIO

2021 0.1127

2020 0.126

0.105 0.11 0.115 0.12 0.125 0.13

2020 2021
Quick Ratio 0.126 0.1127

GP Quick ratio, according to the year axis, was 0.126 in 2020. The current ratio fell to 0.112 by 2021. A
quick ratio of less than 1 increases the possibility that GP will experience financial difficulties.

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Cash Ratio:
Name of ratio formula 2020 2021

Cash Ratio Cash/ Current Asset 0.262 0.278

CASH RATIO

2021 0.278

2020 0.262

0.25 0.255 0.26 0.265 0.27 0.275 0.28

2020 2021
Cash Ratio 0.262 0.278

On the year 2020, GP has a cash ratio of 0.262. In 2021, it increased to 0.278. This suggests that GP is not
doing well.

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Leverage Ratio-

Degrees of operating ratio:

Name of ratio formula 2020 2021

Degrees of operating % change in EBIT/ 1.72 -0.2

ratio % change in Sale

DEGREES OF OPERATING RATIO

-0.22021

2020 1.72

-0.5 0 0.5 1 1.5 2

2020 2021
Degrees of operating ratio 1.72 -0.2

In 2020, the operating ratio was 1.72, but in 2021, it was -0.2. This indicates that operating costs
are rising in terms of sales.

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Degrees of financial ratio:
Name of ratio formula 2020 2021

Degrees of financial % change in N.P./ -1.59 -0.25

ratio % change in EBIT

DEGREES OF FINANCIAL RATIO

-0.25 2021

-1.59 2020

-1.8 -1.6 -1.4 -1.2 -1 -0.8 -0.6 -0.4 -0.2 0

2020 2021
Degrees of financial ratio -1.59 -0.25

The financial ratio was -1.59 in 2020 but dropped to -0.25 in 2021. This indicates that although
the GP Financial Condition is still ok, but it is quite close to 1, which would indicate that the
company is risky.

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Market Ratio-
Earning Per Share:
Name of ratio 2020 2021

Earning Per Share 27.54 25.28

EARNING PER SHARE

2021 25.28

2020 27.54

24 24.5 25 25.5 26 26.5 27 27.5 28

2020 2021
Earning Per Share 27.54 25.28

Investors are more likely to invest in a company with a high EPS ratio because it has a profitable business
and greater growth potential. If the EPS is high, investors will pay more because a higher EPS would
indicate that the company's profit is predicted to be higher in relation to its share price. The EPS of GP
was BDT 27.54 in 2020, but it increased to BDT 25.28 in 2021. The decreased continues to stand out.
Since the EPS is high, the business is profitable. But because it is decreasing, some investors may choose
not to invest even though it is profitable. However, because the EPS is positive, the business is not losing
money and can make a profit.

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P/E Ratio:
Name of ratio 2020 2021

P/E Ratio 13.0 13.0

P/E RATIO

2021 13.00

2020 13.00

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00

2020 2021
P/E Ratio 13.00 13.00

In relation to its earnings, a company's stock market value is determined by the price-to-earnings ratio. It
is evident that GP's P/E ratio increased from 13.00 in 2020 to 13.00 in 2021. The fact that the value has
not changed is a bad sign. The stock has no growth because it hasn't moved in either an upward or
downward direction.

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Cash Conversion Cycle:

Name of ratio formula 2020 2021

Cash Conversion Cycle DIO+DSO-DPO -7.43 -13.93

CASH CONVERSION CYCLE

-13.93 2021

-7.43 2020

-16 -14 -12 -10 -8 -6 -4 -2 0

2020 2021
Cash Conversion Cycle -7.43 -13.93

Inventory is sold before you have to make a payment for it when there is a negative cash
conversion cycle. In other words, your suppliers are funding your company's operations. For
many businesses, a negative cash conversion cycle is ideal. The cash conversion cycle for Gp is
negative. So, that's a positive sign.

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Unlevered Beta (𝜷)
The given beta of Grameenphone is the levered beta as the company’s capital structure includes
debt. The unlevered beta is calculated below:

𝐷
𝛽𝑢 = 𝛽𝐿 ÷ [1 + (1 − 𝑇) × ]
𝐸

= 0.78 ÷ [1 + (1 − 0.439) × 0.754]

= 0.55

D/E ratio 0.75

Levered Beta 0.78
Tax rate 0.439
Unlevered beta 0.55

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Pro forma income statement by using SGR-

Sustainable growth rate = (net income/ equity) * (retained earnings / net income)
=(30,750/52,108) = 59% 59% where retained earnings percentage is 82.31% and Dividend
payment is 17.69%
2020 2021
(BDT CR) (BDT CR)
Sales/Revenue 139,606 221,973
Cost of Goods Sold (COGS) incl. D&A (61,577) (97,907)
Gross Income 78,029 124,066
SG&A Expense (14,778) (23,497)
Earings before interest and tax (EBIT) 63,251 1,00,570
Non Operating interest Income 1,622 2,578
Non operating interest expense (1,904) (3,027)
Pretax Income 62,969 100,120
Income tax (25,614) (40,726)
Net income 37,355 59,394
Retained earnings 30,750 48,890
Dividend payment 6,605 10,504

Balance sheet for the year 2020,

Asset Liability
Debt
148184 96077

Equity
Common Stock Par/Carry Value
13503
Additional Paid-In Capital/Capital Surplus
7,840
Retained earnings
30,750
Total equity
52107
Total (L+E)
148,184

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Pro-forma balance sheet for the year 2021,
by using SGR- 59%
Asset Liability
debt
148184 96077
Asset will grow (59%) Sustainable debt
38,533
87,429
Total asset
Equity
235,613
Common Stock Par/Carry Value
13503
Additional Paid-In Capital/Capital Surplus
7,840
Retained earnings
48,890
Total equity
70,230
Total
235,613

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Pro forma income statement by using IGR –

IGR = (Retained Earnings ÷ Net Income) × (Net Income ÷ Total Assets)

=(30,750/148,184) = 20.75%
2020 2021
(BDT CR) (BDT CR)
Sales/Revenue 139,606 168,575
Cost of Goods Sold (COGS) incl. D&A (61,577) (74,354)
Gross Income 78,029 94,220
SG&A Expense (14,778) (17,844)
Earings before interest and tax (EBIT) 63,251 76,375
Non Operating interest Income 1,622 1,958
Non operating interest expense (1,904) (2,299)
Pretax Income 62,969 76,035
Income tax (25,614) (30,928)
Net income 37,355 45,106
Retained earnings 30,750 37,130
Dividend payment 6,605 7,976

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Pro-forma balance sheet for the year 2021,
by using IGR- 20.75%
Asset Liability
debt
148184 96077
Asset will grow (20.75%) Sustainable debt
81,060
87,429 Total liabilities
Total asset 1,77,137
235,613 Equity
Common Stock Par/Carry Value
13503
Additional Paid-In Capital/Capital Surplus
7,843
Retained earnings
37,130
Total equity
58,476
Total
235,613

Overview : This company has a SGR of 59% which is a very a high rate and also internal growth
rate is 20.75%

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Weighted Average Cost of Capital of Grameenphone
In order to calculate the weighted average cost of capital of Grameenphone, it is first required to
calculate the cost of capital (debt and equity) and the weights they carry in the capital structure.

Capital Structure:

Grameenphone’s capital structure comprises both debt and equity; where the total debt includes
both short-term and long-term debt. Their debt-to-equity ratio is 75%. The weights represent
how much of the total capital is raised through each of the sources.

𝑇𝑜𝑡𝑎𝑙 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 = 𝑇𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 + 𝑇𝑜𝑡𝑎𝑙 𝑒𝑞𝑢𝑖𝑡𝑦 = 37,621 + 49,879 = 87,500

D/E ratio 𝑇𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 ÷ 𝑇𝑜𝑡𝑎𝑙 𝑒𝑞𝑢𝑖𝑡𝑦 = 37,621 ÷ 49,879 = 0.75
𝑊𝑒𝑖𝑔ℎ𝑡 𝑜𝑓 𝑑𝑒𝑏𝑡 = 𝑇𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 ÷ 𝑇𝑜𝑡𝑎𝑙 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 = 37,621 ÷ 87,500 = 0.43
𝑊𝑒𝑖𝑔ℎ𝑡 𝑜𝑓 𝑒𝑞𝑢𝑖𝑡𝑦 = 𝑇𝑜𝑡𝑎𝑙 𝑒𝑞𝑢𝑖𝑡𝑦 ÷ 𝑇𝑜𝑡𝑎𝑙 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 = 49,879 ÷ 87,500 = 0.57

BDT (millions)
Total Debt 37,621
Total Equity 49,879
Total capital 87,500
D/E ratio 0.75
Weight of Debt, Wd 0.43
Weight of Equity, We 0.57

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Cost of debt

The cost of debt is calculated by dividing the total debt of Grameenphone by the interest expense
incurred in the year 2021.

𝐶𝑜𝑠𝑡 𝑜𝑓 𝑑𝑒𝑏𝑡 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒 ÷ 𝑇𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 = 2,640 ÷ 37,621 = 0.07

BDT(millions)
Interest Expense 2,640

Total Debt 37,621

Cost of debt, Rd 0.07

Cost of equity

The cost of equity is calculated using the Capital Asset Pricing Model (CAPM). The given value
of beta for Grameenphone is 0.78. According to data from The World Bank website, the market
risk premium (Market risk minus treasury bill rate) of Bangladesh in 2021 was 6% and the
market risk was 7.3%; the treasury bill rate was 1.3% in 2021 (Risk Premium on Lending
(Lending Rate Minus Treasury Bill Rate, %) - Bangladesh | Data, n.d.). These values are
plugged in the CAPM model to calculate the expected return i.e., cost of equity.

𝐶𝑜𝑠𝑡 𝑜𝑓 𝑒𝑞𝑢𝑖𝑡𝑦 = 𝑅𝑓 + 𝑅𝑖𝑠𝑘 𝑝𝑟𝑒𝑚𝑖𝑢𝑚 × 𝛽 = 1.3 + (6 × 0.78) = 5.98%

CAPM BDT(millions)
Treasury bond rate, Rf 1.30%
Risk premium 6.00%
Market Risk, Rm 7.30%
Levered Beta, 𝜷 0.78
Cost of equity, Re 0.06

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Tax:

The tax rate is calculated by diving the tax expense incurred in 2021 by the pre-tax income; it is
then used in WACC calculation to adjust the tax benefit from the cost of debt.

𝑇𝑎𝑥 𝑟𝑎𝑡𝑒 = 𝐸𝐵𝑇 ÷ 𝑇𝑎𝑥 𝑒𝑥𝑝𝑒𝑛𝑠𝑒 = 26,692 ÷ 60821 = 0.439 𝑜𝑟 43.9%

BDT (millions)
Earnings before tax (EBT) 60,821
Tax expense 26,692
Tax rate, T 0.439

WACC calculation:

WACC shows the weighted average risk of Grameenphone’s raised capital.

𝑊𝐴𝐶𝐶 = 𝑊𝑑 × 𝑅𝑑 (1 − 𝑇) + 𝑊𝑒 × 𝑅𝑒

= 0.43 × 0.0598(1 − 0.439) + 0.57 × 0.0702

= 0.0544 𝑜𝑟 5.44%

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 Introduction of Foreign Company:
Walmart

Walmart Inc. is an American multinational retail corporation that operates a chain of

hypermarkets (also called supercenters), discount department stores, and grocery stores from the
United States, headquartered in Bentonville, Arkansas.
As of October 31, 2022, Walmart has 10,586 stores and clubs in 24 countries, operating under 46
different names. Walmart is the world's largest company by revenue, with about US$570 billion
in annual revenue, according to the Fortune Global 500 list in October 2022. It is also the largest
private employer in the world with 2.2 million employees. It is a publicly traded family-owned
business, as the company is controlled by the Walton family. Sam Walton's heirs own over 50
percent of Walmart through both their holding company Walton Enterprises and their individual
holdings. Walmart was the largest United States grocery retailer in 2019, and 65 percent of
Walmart's US$510.329 billion sales came from U.S. operations.
Walmart’s Mission Statement
Walmart Inc.’s corporate mission is “to save people money so they can live better.” This
statement reflects the ideals of the company’s founder, Sam Walton. Strategic decisions in the
business are a direct manifestation of this mission statement, which is synonymous to the retail
company’s slogan, “Save money. Live better.” Based on this corporate mission statement, it is
clear that Walmart’s business strategies and purpose involve using price as a selling point to
attract target consumers. The significance of such a selling point is noticeable in many of the
retail company’s strategies. For example, Walmart Inc.’s marketing mix or 4P involves low
prices as a strategy. Other areas of the company are determined by the need to minimize selling
prices as a way to achieve competitiveness to support the corporate mission statement and the
corporate vision statement.

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Enterprise Value calculation:

Walmart’s Data is pulled from 2021 Income statement and Balance Sheet

1 Outstanding Shares 2,831Million

2 Share price as of $143.20

Dec 31, 2021
3 Market Capitalization (2,831Million× $143.20)
= $405,399.2Million
4 Short-Term Debt $1,690Million

5 Long-Term Debt $57,950Million

6 Total Debt $59,640Million

7 Cash and Cash Equivalents $17,741Million

Enterprise Value ($405,399.2Million+$59,640Million-

$17,741Million)
= $447,298.2Million = $447.2982Billion

Intrinsic Value calculation:

For calculated Walmart’s intrinsic value, the necessary data are given bellow:
1) Perpetual growth rate, g = 5%
2) Year = 5 years (forecasting from 2022 to 2026)
3) Risk free rate, Rf= 5.19%
4) Rm = 9%
5) Beta = 0.53
6) Tax rate = 29.395%
7) Total debt, D = 63.64 Billion
8) Total equity, E = 87.531 Billion
9) Cost of debt, Rd = 3.3076%
10) Cost of equity, Re = Rf + beta (Rm-Rf)
= 5.19 + 0.53 (9)
= 9.96%
11) WACC = (Wd) (Rd)(1-T) + (We) (Re)
= (63.64B/ 151.171B) (3.3076%) (1-29.395%) + (87.531B/ 151.171B) (9.96%)
= 6.75%

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 Free Cash Flow
2022 2023 2024 2025 2026

FCF1 FCF2 FCF3 FCF4

FCF5 Terminal
Value
14B 16.10B 16.28B 17.91B 21.38B 1,282.8B

Terminal Value = FCF final year (1+ g) / WACC - g

= 21.38 (1+.05) / 0.0675 - 0.05
= 1,282.8Billion
PV of 2022 = 14/ (1+ 0.0675)^ 1 = 13.11475
PV of 2023 = 16.10/ (1 + 0.0675) ^ 2 = 14.1283
PV of 2024 = 16.28 / (1 + 0.0675) ^ 3 = 13.3829
PV of 2025 = 17.91 / (1+ 0.0675) ^ 4 = 13.7919
PV of 2026 = 21.38 / (1+ 0.0675) ^ 5 = 15.423
PV of TV = 1,282.8 / (1+ 0.0675) ^ 5 = 925.3788
Total Value of Walmart = 925.3788 Billion
Walmart’s total debt = 63.64 Billion
So Walmart’s intrinsic value = 925.3788 – 63.64
= 861.7388Billion

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Valuation:
Fair Value of the company = 925.3788 Billion

Total Equity value = 861.7388Billion

Total Equity value = Fair value of the company – Total liabilities today
Fair value of the company 925.3788
Total Debt 63.64
Total Equity value 861.7388 Billion

Equity fair of each share = 302.68

Equity fair of each share = Total Equity fair value / Number of Cs outstanding
Total Equity fair value 861.7388
Number of Cs outstanding 2.847
Equity fair of each share 302.68

Sell or Buy Decision

Fair Value Market Value

302.68 141.79

The fair value is lesser than the market value so the stock is undervalued.
So I buy more of these stocks in the hopes that the value of the stocks will rise over time. Buying
more of these stocks is an opportunity for me.
If I buy an undervalued stock, it will almost certainly perform in the market and the price will
increase to its real value. I should invest in these stocks as they are cheap right now and its price
will eventually rise to its fair worth.
So, it's usually preferable to buy more stocks in these scenarios

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 Recommendation
As the gross profit margin and operating profit margin have decreased from 2020 to 2021, that
means there is a lot going on. This is the reason the net profit margin was also dropped. Also,
their ROA has also dropped, which means that they are not using their assets properly. This is
the reason they have a low ROE. They should utilize their assets properly to increase the ROE.
To raise current ratios and lower debt, GP should concentrate on managing current assets. The
EPS ratio of this company is good, but it’s decreasing. in order to maintain a strong relationship
with their suppliers, making investments in this company unprofitable. For the purpose of
attracting investors, the business should raise its EPS ratio. The company's profitability should
improve if they can increase their P/I ratio.
The valuation of the company Walmart shows that it is doing very well 9n the market but that is not
translating into success in the stock market. Stock price is primarily about supply and demand in the stock
market, rather than how well a company is doing. The value of a stock is defined by how much an investor
is prepared to pay for it. Investors will buy stock if they believe it will increase in value. Stock will increase
in value if more investors buy it. Walmart needs to do the following to increase its market value in the stock
market. Firstly, Walmart needs to buy back some shares. Repurchasing or buying back your own stock is a
simple way to potentially increase its value. First of all, this shows that you believe in your company’s future
performance, which in turn gives potential investors more confidence in the stock. Secondly, it reduces the
available supply of the stock in the market, so if demand remains steady, or increases, then the laws of
supply and demand dictate that the value of the stock should increase.
Secondly, Walmart can begin raising debt. Financial Theory supports that capital structure does
not have an effect on firm value; However, in the real world capital markets are largely based on
psychology and every move can have an impact. Raising debt can lower the overall risk of the
firm provided that the firm has not reached the point of financial distress yet. In addition,
depending on the amount of debt raised and how it will be used it may have a positive effect on
the stock price.

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Data Sources:
https://data.worldbank.org/indicator/FR.INR.RISK?locations=BD

https://www.wsj.com/market-data/quotes/BD/XDHA/GP/financials

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APPENDIX

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