NEW YORK ( TheStreet) - Wal-Mart ( WMT) is the world's largest retailer, competing with companies like Target ( TGT), Costco ( COST), Amazon ( AMZN) and Best Buy ( BBY). The retailer sells almost every variety of merchandise, but is most dependent on grocery products.Our price estimate for Wal-Mart stands at $65.42 which is about 17% above market price. We estimate that Wal-Mart generates 62% of its stock value from its flagship U.S. stores. We recently examined the increasing competitive push in the grocery sector from retailers like CVS ( CVS), Walgreens ( WAG) and Target. Beyond these retail chains, Wal-Mart also competes with grocery stalwarts like Safeway ( SWY), Krogers ( KR) and Whole Foods ( WFMI). Wal-Mart has significant exposure to this segment with over 50% of its sales attributable to groceries. Apart from increasing competition, another cause of concern in the grocery sector is food inflation. Given Wal-Mart's high exposure to groceries, the retailer may need to seek cost cuts to mitigate the impact.