Analyst Note
| Zain Akbari, CFA |Our $116 fair value estimate for wide-moat Walmart should rise by a low- to mid-single-digit percentage, reflecting the time value of money and solid third-quarter sales that outpaced our targets. While we continue to believe the firm should be able to capitalize on an increasingly omnichannel retail landscape in the near and long term (to the tune of a low- to mid-single-digit sales growth rate and 4% to 5% adjusted operating margins over the next decade), we still suggest investors seek a larger margin of safety as it continues to revamp its business model in a highly competitive environment.