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Valuation Model

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Make a recommendation as to which valuation model would serve best. Please see attached.

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The solution answers the question below and goes into quite a bit of detail regarding the valuation model. An excellent response to the question being asked.

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The most accurate model to use would probably be the variable growth model. This is because Wal-mart is in a growth state right now. Thus it is very likely that it will grow at a much higher rate at least for the next 4-5 years. It is even likely that this growth rate will exceed Wal-mart's cost of capital making the constant growth model invalid. Thus, I would suggest that we use the variable growth model. For the next 5 ...

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