Expected Return = Risk Free rate + (beta * market risk premium)

Expected return = 3.68% + (0.66*5.05%)

Expected return = 7.01%

 100

Year Stage EPS Grwoth Payout Dividend TV PV

1 Growth 4.10 10.40% 29% 1.201344 1.122751
2 Growth 4.53 10.40% 29% 1.326284 1.158428
3 Growth 5.00 10.40% 29% 1.464217 1.195238
4 Growth 5.52 10.40% 29% 1.616496 1.233217
5 Growth 6.09 10.40% 29% 1.784612 1.272403
6 Transition 6.72 9.90% 31% 2.052968 1.36798
7 Transition 7.39 9.39% 32% 2.34708 1.461644
8 Transition 8.08 8.89% 33% 2.667014 1.552227
9 Transition 8.80 8.38% 34% 3.012403 1.638548
10 Transition 9.54 7.88% 35% 3.382397 1.719439
11 Transition 10.29 7.38% 37% 3.775624 1.793772
12 Transition 11.05 6.87% 38% 4.190162 1.860482
13 Transition 11.81 6.37% 39% 4.623516 1.918595
14 Transition 12.56 5.87% 40% 5.072617 1.967249
15 Transition 13.30 5.36% 42% 5.533834 2.005716
16 Transition 14.01 4.86% 43% 6.002998 2.033423
17 Transition 14.69 4.35% 44% 6.475447 2.049961
17 Maturity 15.33 3.85% 45% 219.0454 69.34416

96.69523
 16
1.230769
0.012308

0.0655
0.005038
Current Dividend 1.09
High Growth 10.40%
Constant Growth 5%
Ke 7%

Year Dividend Terminal Value PV

2011 1.20 1.12
2012 1.33 1.16
2013 1.47 1.20
2014 1.62 1.24
2015 1.79 93.85 68.19
2016 1.88
Value 72.91
WAL-MART CONSOLIDATED STATEMENTS OF INCOME
Fiscal years ended January 31
(Amounts in $millions except per share data)
2009 2010

Revenues:
Net sales 401,087 405,046
Other income -- net 3,287 3,168
Total revenues 404,374 408,214
Cost of goods sold 304,056 304,657
Gross profit 100,318 103,557
Expenses:
Operating, selling, and general and administrative
expenses 77,520 79,607
Interest expenses -- net 1,900 1,884
Total expenses 79,420 81,491
Earnings (income) before taxes and minority interest 20,898 22,066
Income tax 7,145 7,139
Earnings (income) before minority interest 13,753 14,927
Minority interest - 499 - 513
Earnings from discontinued operations (net of tax) 146 - 79
Earnings after tax (net income) 13,400 14,335

Average number of shares outstanding (millions) 3,939 3,866

EPS $ 3.40 $ 3.71

Growth @ 10.4%
EPS at end of the year 4.1
WAL-MART CONSOLIDATED BALANCE SHEETS
As of January 31
(Amounts in $millions)
2009 2010
ASSETS
Current assets:
Cash and cash equivalents 7,275 7,907
Accounts receivable 3,905 4,144
Inventories 34,511 33,160
Prepaid expenses and other 3,063 2,980
Current assets of discontinued operations 195 140
Total current assets 48,949 48,331
Property, plant and equipment (PPE):
Land (property) 19,852 22,591
Plant and equipment (PE) 105,968 115,257
Less: accumulated depreciation 32,964 38,304
Net PPE 92,856 99,544
Net property under capital leases 2,797 2,763
Goodwill 15,260 16,126
Other assets 3,567 3,942
Total assets 163,429 170,706

LIABILITIES AND EQUITY

Current liabilities:
Short-term borrowings 1,506 523
Accounts payable 28,849 30,451
Accrued liabilities and income tax 18,789 20,099
Current maturities of long-term debt 5,848 4,050
Obligations under capital leases due within 315 346
one year
Current liabilities of discontinued operations 83 92
Total current liabilities 55,390 55,561
Long-term debt 31,349 33,231
Long-term obligations under capital leases 3,200 3,170
Deferred income taxes 6,014 5,508
Minority interest 397 307
Shareholders’ equity 67,079 72,929
Total liabilities and equity 163,429 170,706

Source: Adapted from 2010 Wal-Mart Annual Report

Date WMT SPX
11/30/2005 $ 53.45 1,115 $100 1,800
11/1/2005 $ 54.55 1,096
9/30/2005 $ 49.68 1,036 $90 1,600
8/31/2005 $ 49.09 1,057
8/2/2005 $ 50.87 1,021
6/30/2005 $ 49.88 987 $80
1,400
5/31/2005 $ 48.44 919
4/30/2005 $ 49.74 919 $70
3/31/2005 $ 50.40 873 1,200
3/1/2005 $ 52.10 798 $60
2/1/2005 $ 49.24 735
1,000
1/1/2005 $ 47.12 826
$50
11/30/2004 $ 56.06 903
11/2/2004 $ 55.88 896 800
9/30/2004 $ 55.81 969 $40
9/1/2004 $ 59.89 1,166
600
7/31/2004 $ 59.07 1,283 $30
6/30/2004 $ 58.62 1,267
6/1/2004 $ 56.20 1,280 400
$20
4/30/2004 $ 57.74 1,400
3/31/2004 $ 57.98 1,386
3/2/2004 $ 52.68 1,323 $10 200
1/31/2004 $ 49.59 1,331
1/1/2004 $ 50.74 1,379 $0 -
12/2/2003 $ 47.53 1,468
11/3/1995
4/3/1996
9/3/1996
2/3/1997
7/3/1997
12/3/1997

10/3/1998
3/3/1999

1/3/2000

11/3/2000
4/3/2001

2/3/2002

12/3/2002
5/3/2003
10/3/2003
3/3/2004

1/3/2005
6/3/2005
11/3/2005
1/3/1995
6/3/1995

5/3/1998

8/3/1999

6/3/2000

9/3/2001

7/3/2002

8/3/2004
10/31/2003 $ 47.90 1,481
9/30/2003 $ 45.21 1,549 WMT S&P 500
9/3/2003 $ 43.65 1,527
7/31/2003 $ 43.63 1,474
7/1/2003 $ 45.95 1,455
5/31/2003 $ 48.11 1,503
4/30/2003 $ 47.60 1,531
4/1/2003 $ 47.92 1,482
2/28/2003 $ 46.95 1,421
1/31/2003 $ 48.31 1,407
1/2/2003 $ 47.69 1,438
11/30/2002 $ 46.18 1,418
10/31/2002 $ 46.10 1,401
10/1/2002 $ 49.28 1,378
8/31/2002 $ 49.32 1,336
7/31/2002 $ 44.72 1,304
7/2/2002 $ 44.50 1,277
5/31/2002 $ 48.17 1,270
4/30/2002 $ 48.45 1,270
4/2/2002 $ 45.03 1,311
2/28/2002 $ 47.24 1,295
 1/31/2002 $ 45.36 1,281
1/2/2002 $ 46.11 1,280
11/30/2001 $ 46.80 1,248
10/31/2001 $ 48.56 1,249
10/2/2001 $ 47.31 1,207
8/31/2001 $ 43.82 1,229
7/31/2001 $ 44.96 1,220
6/30/2001 $ 49.35 1,234
5/31/2001 $ 48.20 1,191
5/1/2001 $ 47.23 1,192
3/31/2001 $ 47.14 1,157
2/28/2001 $ 50.11 1,181
1/31/2001 $ 51.61 1,204
1/2/2001 $ 52.40 1,181
11/30/2000 $ 52.82 1,212
10/31/2000 $ 52.06 1,174
9/30/2000 $ 53.92 1,130
8/31/2000 $ 53.20 1,115
8/1/2000 $ 52.67 1,104
6/30/2000 $ 53.01 1,102
5/31/2000 $ 52.50 1,141
5/2/2000 $ 55.73 1,121
3/31/2000 $ 57.00 1,107
2/29/2000 $ 59.69 1,126
2/1/2000 $ 59.56 1,145
1/1/2000 $ 53.85 1,131
11/30/1999 $ 53.05 1,112
11/2/1999 $ 55.64 1,058
9/30/1999 $ 58.95 1,051
9/1/1999 $ 55.85 996
7/31/1999 $ 59.17 1,008
6/30/1999 $ 55.91 990
6/1/1999 $ 53.67 975
4/30/1999 $ 52.61 964
3/31/1999 $ 56.32 917
3/2/1999 $ 52.03 848
2/2/1999 $ 48.06 841
1/1/1999 $ 47.80 856
12/1/1998 $ 50.51 880
10/31/1998 $ 53.90 936
9/30/1998 $ 53.55 886
9/2/1998 $ 49.24 815
7/31/1998 $ 53.48 916
6/30/1998 $ 49.18 912
6/2/1998 $ 55.01 990
4/30/1998 $ 54.10 1,067
3/31/1998 $ 55.86 1,077
 2/28/1998 $ 61.30 1,147
1/31/1998 $ 62.01 1,107
1/1/1998 $ 59.98 1,130
12/2/1997 $ 57.55 1,148
10/31/1997 $ 55.15 1,139
9/30/1997 $ 51.40 1,060
9/3/1997 $ 49.50 1,041
7/31/1997 $ 48.05 1,134
7/1/1997 $ 55.90 1,211
5/31/1997 $ 48.80 1,224
4/30/1997 $ 51.75 1,256
4/1/1997 $ 51.74 1,249
2/28/1997 $ 50.50 1,160
1/31/1997 $ 50.09 1,240
1/1/1997 $ 56.80 1,366
11/30/1996 $ 53.13 1,320
10/31/1996 $ 52.19 1,315
10/1/1996 $ 45.38 1,429
8/31/1996 $ 48.13 1,437
7/31/1996 $ 47.63 1,518
7/2/1996 $ 55.25 1,431
5/31/1996 $ 57.63 1,455
4/30/1996 $ 57.63 1,421
4/2/1996 $ 55.38 1,452
2/29/1996 $ 56.50 1,499
1/31/1996 $ 48.75 1,366
1/2/1996 $ 54.75 1,394
11/30/1995 $ 69.12 1,469
10/31/1995 $ 57.63 1,389
9/30/1995 $ 56.31 1,363
8/31/1995 $ 47.56 1,283
8/1/1995 $ 44.31 1,320
6/30/1995 $ 42.25 1,329
5/31/1995 $ 48.25 1,373
5/2/1995 $ 42.63 1,302
3/31/1995 $ 46.00 1,335
2/28/1995 $ 92.19 1,286
1/31/1995 $ 86.12 1,238
1/3/1995 $ 86.00 1,280

Source: Yahoo! Finance

 7/3/2002
12/3/2002

WMT
5/3/2003
10/3/2003
3/3/2004
8/3/2004
1/3/2005
6/3/2005
11/3/2005

S&P 500
200
400
600
800
1,000
1,200
1,400
1,600
1,800
WAL-MART SELECTED EARNINGS AND DIVIDENDS INFORMATION

Annual Annual
Earnings/ Dividends/ Earnings Dividends Dividend
Year* Share $ Share $ Growth (%) Growth (%) Payout %

1974 0.002 0.0001 n/a n/a 5.6

1975 0.002 0.0002 0.0 100.0 11.1
1976 0.003 0.0003 71.1 30.0 8.4
1977 0.004 0.0003 40.3 30.8 7.9
1978 0.006 0.001 30.6 88.2 11.3
1979 0.008 0.001 36.9 37.5 11.4
1980 0.011 0.001 40.9 38.2 11.2
1981 0.014 0.002 29.4 31.6 11.4
1982 0.019 0.002 40.9 30.0 10.5
1983 0.029 0.003 48.4 38.5 9.8
1984 0.044 0.004 52.2 55.6 10.0
1985 0.060 0.007 37.1 50.0 10.9
1986 0.073 0.009 20.8 33.3 12.1
1987 0.099 0.011 37.1 21.4 10.7
1988 0.140 0.015 40.9 41.2 10.7
1989 0.185 0.020 32.1 33.3 10.8
1990 0.240 0.030 29.7 50.0 12.5
1991 0.285 0.035 18.8 16.7 12.3
1992 0.350 0.045 22.8 28.6 12.9
1993 0.435 0.055 24.3 22.2 12.6
1994 0.510 0.065 17.2 18.2 12.7
1995 0.585 0.085 14.7 30.8 14.5
1996 0.595 0.100 1.7 17.6 16.8
1997 0.660 0.110 10.9 10.0 16.7
1998 0.770 0.140 16.7 27.3 18.2
1999 0.980 0.160 27.3 14.3 16.3
2000 1.190 0.200 21.4 25.0 16.8
2001 1.390 0.240 16.8 20.0 17.3
2002 1.470 0.280 5.8 16.7 19.0
2003 1.790 0.300 21.8 7.1 16.8
2004 2.070 0.360 15.6 20.0 17.4
2005 2.410 0.520 16.4 44.4 21.6
2006 2.720 0.600 12.9 15.4 22.1
2007 2.920 0.670 7.4 11.7 22.9
2008 3.160 0.880 8.2 31.3 27.8
2009 3.350 0.950 6.0 8.0 28.4
2010 3.720 1.090 11.0 14.7 29.3

Arithmetic average 25.0 31.3 14.4

Geometric average 26.2 31.9 n/a

Note: Per share information based on dilution; rounded; after adjusting for splits
* Fiscal year ended January 31
Source: Wal-Mart Annual Reports: 1979, 1987, 1996, 2005, 2010
SELECTED HISTORICAL PRICE/EARNINGS INFORMATION

Year* Wal-Mart Target The Gap Ltd. Brands Dillard's J.C. Penney Macy's
1994 20.9 13.9 17.9 15.2 13.6 12.4 -
1995 20.4 18.6 15.0 22.2 13.3 13.9 20.7
1996 18.4 14.1 19.0 17.3 16.0 16.1 15.8
1997 21.8 17.1 22.3 17.5 15.4 17.9 15.5
1998 31.2 22.2 29.2 20.7 13.6 25.2 15.3
1999 39.1 25.5 33.5 21.4 12.1 21.6 12.8
2000 38.0 22.2 32.5 21.6 13.1 NMF 10.9
2001 34.9 23.3 NMF 17.4 20.9 NMF 13.0
2002 30.3 20.0 25.2 17.2 13.6 16.4 11.1
2003 26.9 18.0 16.7 14.8 NMF 17.1 11.0
2004 22.8 22.2 17.7 15.7 15.8 15.7 13.0
2005 18.3 19.7 15.8 17.3 14.8 13.8 13.0
2006 16.0 16.7 19.8 15.9 48.3 14.0 17.7
2007 14.9 18.0 17.2 12.5 n/a 13.9 16.4
2008 16.2 16.2 12.5 23.7 48.3 13.1 13.9
2009 14.7 15.6 12.2 14.0 22.5 23.4 11.1
5-Year Avg 16.0 16.6 14.0 16.7 35.4 16.8 13.8
10-Year Avg 23.3 19.2 18.8 17.0 24.7 15.9 13.1
Total Avg 24.0 19.0 20.4 17.8 20.1 16.8 14.1

Projected 13.4 13.6 10.4 12.4 11.9 15.2 8.2

Notes: NMF = "not meaningful"; 2009 trailing company multiples are based on the February 1, 2010 share price and past four
Projected company multiples are based on February 1, 2010 share price and projected fiscal year 2011 earnings (i.e. th
Trailing and projected S&P 500 multiples are based on 2009 and 2010 calendar years, respectively
* Calendar year

Source: Value Line, Yahoo! Finance, Bloomberg

Share Price $ 53.62 $ 51.55 $ 19.21 $ 19.23 $ 16.66 $ 25.06 $ 15.61

FY09 EPS $ 3.66 $ 3.30 $ 1.58 $ 1.37 $ 0.74 $ 1.07 $ 1.41
FY10 EPS $ 4.00 $ 3.80 $ 1.85 $ 1.55 $ 1.40 $ 1.65 $ 1.90
Trailing 14.65 15.62 12.16 14.04 22.51 23.42 11.07
Forward 13.41 13.57 10.38 12.41 11.90 15.19 8.22
 Kroger Supervalu Safeway Costco S&P 500
10.8 17.2 - 19.6 15.3
11.7 17.1 14.3 14.1 14.9
15.3 19.5 17.8 14.9 16.0
17.2 17.9 20.7 16.9 17.3
23.1 22.5 26.3 24.4 19.3
22.4 20.5 25.1 30.7 17.5
15.8 13.5 22.0 31.1 15.4
16.2 16.0 18.5 29.7 19.5
11.3 13.0 11.8 26.8 18.3
14.3 13.5 11.7 21.2 17.6
16.3 18.7 17.0 20.0 18.7
14.0 14.4 15.8 22.3 17.1
14.1 13.7 15.7 22.1 16.9
16.4 14.3 17.2 21.0 17.2
14.1 10.7 12.4 23.1 14.7
12.4 8.0 12.9 22.5 18.0
14.3 11.0 14.2 22.2 16.6
14.5 13.6 15.5 24.0 17.3
15.3 15.7 17.3 22.5 17.1

12.3 8.4 12.6 19.9 12.3

2010 share price and past four quarter's earnings (fiscal 2010 earnings);
fiscal year 2011 earnings (i.e. through January 31, 2011);

$ 21.53 $ 14.72 $ 22.65 $ 57.80

$ 1.73 $ 1.85 $ 1.75 $ 2.57
$ 1.75 $ 1.75 $ 1.80 $ 2.90
12.45 7.96 12.94 22.49
12.30 8.41 12.58 19.93
SELECTED COMPARABLE DATA

Next 5
Past 5 Years PEG Ratio 2015 2010
Years Projected (Trailing P/E 2010 Net Projected Return on
Trailing Projected Earnings Earnings / Projected Profit Net Profit Common
Comparable P/E P/E Growth Growth Growth) Margin* Margin* Equity*
S&P 500 18.00 12.25 -4.50% 10.83% 1.66 n/a n/a n/a
Industry 15.64 14.23 5.85% 14.62% 1.07 n/a n/a n/a
Target 15.60 13.60 9.78% 12.70% 1.23 3.80% 5.00% 16.20%
Wal-Mart 14.70 13.40 8.75% 10.39% 1.41 3.50% 3.70% 20.10%

Notes: Trailing company multiples are based on the February 1, 2010 share price and past four quarter's earnings (fiscal year 2
Projected company multiples are based on February 1, 2010 share price and projected fiscal year 2011 earnings (i.e. thr
Trailing and projected S&P 500 multiples are based on 2009 and 2010 calendar years, respectively
* Fiscal year

Source: Value Line, Yahoo! Finance, Bloomberg

 2015 2015
Projected 2010 Projected
Return on Long- Long-Term
Common Term Debt Debt to
Equity* to Equity* Equity*
n/a n/a n/a
n/a n/a n/a
16.50% 98.51% 46.00%
20.00% 51.45% 41.00%

arter's earnings (fiscal year 2010 earnings);

al year 2011 earnings (i.e. through January 31, 2011);