| Walmart | |||
| Value Line | Reuters | Yahoo Finance | |
| Last Price | $121.80 | $121.80 | $121.80 |
| Dividend | 2.16 | 2.12 | 2.16 |
| Dividend Yield | 1.77% | 1.77% | 1.77% |
| Market Capitalization | 344,970,000,000 | 345,084,700,000 | 345,510,000,000 |
| Price/Earnings Ratio | 23.40 | 23.48 | 23.50 |
| Earnings Per Share | $5.20 | $5.29 | $5.19 |
| Beta | 0.8 | 0.3 | 0.28 |
| Interpret the company's beta. Is it what you would have expected? Why or why not? | |||
Beta of a stock the sensitivity of the stock's returns to the returns of the overall market.
Stocks of companies in a cyclical business have a beta higher than 1 because their earnings are highly correlated to the business cycle.
Stocks of companies in a non-cyclical business have a beta lower than 1 because their earnings have low correlation to the business cycle.
Walmart is in a non-cyclical business (retail). Its earnings are not affected much by the business cycle. Its beta as expected is lower than 1. It shows that the returns of Walmart stock have low sensitivity to the returns of the overall market.
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