Based on the provided data and recent market performance, here's a concise analysis of WMT's valuation:
Current Valuation Analysis:
WMT appears overvalued based on several key metrics. The stock's P/E ratio has risen dramatically to 86.38x in FY2024 from 33.68x in FY2023 [Relevant Data], significantly above its historical average. The EV/EBITDA multiple has also increased to 12.57x, showing premium pricing compared to historical levels.
Growth vs. Valuation:
While WMT shows solid revenue growth (648.1B in FY2024 vs 611.3B in FY2023), the current valuation multiples appear stretched relative to this growth rate. The stock's price appreciation of 72% in 2024 has pushed valuations well beyond fundamental justification.
Technical Indicators:
The stock is currently showing bearish signals with RSI at 39.05 and MACD turning negative (-0.86), suggesting potential downward pressure on the price.
Market Position:
At $94.78, WMT is trading significantly below its recent high of $96.18, with technical indicators suggesting further potential downside. The current price represents a premium valuation that appears difficult to justify even considering WMT's market leadership and e-commerce growth.
Conclusion:
WMT is currently overvalued due to stretched multiples, technical weakness, and a valuation disconnect from fundamental growth rates. The stock's significant price appreciation in 2024 has pushed it beyond reasonable valuation levels, despite solid underlying business performance.