Impact of stock valuation on financial performance a review of Carrefour

Abstract

This study compares market and predicted prices in order to assess the target price of Carrefour using the discount cash flow approach and valuation techniques. Additionally, recommendations are made based on the findings of this study. This study looks at a fiveyear forecast for future cash flow to the company using past data. But cash flows were discounted back using WACC to 2019 in order to determine the firm's net present value. In spite of its modest development, Carrefour is still unable to compete on the basis of market value, as this article demonstrates. Carrefour needs to down their costs further more. In accordance with CAPM guidelines, the discount rate is projected to be -5.90%, whereas the computed target price is -3.77%, indicating a market price of 15.93%. 2019 is expected to be greater than 2020, with Carrefour's market price reaching 13.76% on June 30, 2020.