ESTIMATING THE INTRINSIC VALUE OF THE STOCK (wal-mart)
Collect the dividendper share paid bywal-mart in 2012.
Estimate the constant dividend growth rate of the stock for the foreseeable future.You need to justify this rate based on your economic, industry and company analyses.
Determine the required rate of return on the stock using the Capital Asset Pricing Model.You may use 9% as the market return and 4% as the risk-free rate.
Estimate the intrinsic value of the stock using the constant growth dividend valuation model.