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The Wal-Mart Financial Picture
Cengage
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By Nivine Richie

 

When we determine the value of a share of stock, we need to consider the ability of the firm to generate positive cash flow.

 

Consider Wal-Mart, for example. The stock is currently trading at a price of 86.62 per share and the trend over the last five years has been relatively flat, with some growth since a low in 2015. What are investors looking for in Wal-Mart stock? Probably the same thing they're looking for in any stock: earnings growth.

 

For discussion

In the video below, consider some of the characteristics of Wal-Mart and then identify the factors that will drive the share price higher or lower. Would you invest your money in Wal-Mart shares? Why or why not?