A-Level Article Review On Peer Review For Free Use

The summary is very good highlighting clearly what task of the case is i.e. to value Wal-Mart and Amazon using both Multiples valuation approach and DCF valuation approach. The analysis was very good. The multiple valuation approach used five multiples the P/E, P/S, P/B, P/CF and P/FCF. The use of several multiples cutting across all the financial statements made the approach more reliable. The multiple valuations approach estimated the value of Wal-Mart to range between $218.5 billion to $291.4 billion, while Amazon value was estimated to range between $187.4 billion to $490.4 billion. The report justified the wider range for Amazon by citing that Amazon is a growth company with historical values that vary year to year. The DCF calculations for both Wal-Mart and Amazon are clear and a good case is made of why to uses the company’s WACC as the appropriate discount rate. The DCF model estimated Wal-Mart to be valued at $338.4 billion, and Amazon was estimated to be valued at $268.56 billion. Calculating the five year price target of Wal-Mart and Amazon share prices to be $91.29 and $1,508.70 make it easy to understand why the report recommends the purchase of both shares. The exhibits provide additional information that is helpful in gaining a better understanding of the report. The five year price targets would have been more compelling if they included the current share prices so that one can judge at a glance whether the share prices are expected to appreciate or depreciate over the five year period.
Overall, the presentation was brief and to the point.