Investment Memorandum: Walmart Inc. (WMT)
Target audience: US-based institutional investor Currency: USD Perspective: independent equity analyst Standard: Finance / Koller (Valuation, 6th Ed.)
1. Executive Summary
- Recommendation: (Buy / Hold / Sell)
- Target price: $XXX.XX
- Upside / Downside: XX%
- Investment thesis (1-2 sentences)
- Key risks (top 3)
2. Business Description
- Business model
- Segments: Walmart U.S., International, Sam’s Club
- Recent developments (including Q4-2026)
- Business quality: ROIC vs WACC
3. Industry and Competition
- Macro environment (inflation, consumer spending, rates)
- Key competitors (AMZN, COST, TGT, KR)
- Sector attractiveness (Porter’s 5 Forces)
- Structural advantages and limitations
4. Investment Thesis
- Catalyst 1
- Catalyst 2
- Catalyst 3
- What the market is not correctly pricing in
- Bear case and validation
5. Financial Analysis
- Historical performance: revenue, margins, ROIC
- 5-10 year projection assumptions
- Revenue and cost drivers
- Balance sheet strength and cash generation
6. Valuation
- Selected methodologies (5 to 7)
- Justification for each methodology
- Weights per methodology
- Consolidated result and football field
6.1 DCF
- Assumptions: WACC, terminal growth, FCF
- Key sensitivities
6.2 RIM
- Book value
- Residual income
- Cost of equity
6.3 Multiples
- Peers and comparability
- Multiples used (as a single family)
6.4 SOTP
- Value by segment
- Multiple or approach applied per block
6.5 DDM
- Dividend policy
- Growth assumptions
6.6 Additional Method (optional)
- BSM / real options / EVA or other
- Technical rationale for inclusion
7. Risks
- Operational
- Competitive
- Macro/regulatory
- Mitigants
8. ESG Factors
- Environmental
- Social
- Corporate governance
9. Conclusion and Recommendation
- Final valuation + thesis synthesis
- Final recommendation and monitoring conditions