WMT Relative Valuation
WMT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WMT is overvalued; if below, it's undervalued.
Historical Valuation
Walmart Inc (WMT) is now in the Overvalued zone, suggesting that its current forward PE ratio of 39.98 is considered Overvalued compared with the five-year average of 25.54. The fair price of Walmart Inc (WMT) is between 66.11 to 97.23 according to relative valuation methord. Compared to the current price of 114.41 USD , Walmart Inc is Overvalued By 17.66%.
Relative Value
Fair Zone
66.11-97.23
Current Price：114.41
17.66%
Overvalued
39.98
PE
1Y
3Y
5Y
Trailing
Forward
20.03
EV/EBITDA
Walmart Inc. (WMT) has a current EV/EBITDA of 20.03. The 5-year average EV/EBITDA is 13.81. The thresholds are as follows: Strongly Undervalued below 8.75, Undervalued between 8.75 and 11.28, Fairly Valued between 16.34 and 11.28, Overvalued between 16.34 and 18.87, and Strongly Overvalued above 18.87. The current Forward EV/EBITDA of 20.03 falls within the Strongly Overvalued range.
28.84
EV/EBIT
Walmart Inc. (WMT) has a current EV/EBIT of 28.84. The 5-year average EV/EBIT is 19.92. The thresholds are as follows: Strongly Undervalued below 12.69, Undervalued between 12.69 and 16.31, Fairly Valued between 23.53 and 16.31, Overvalued between 23.53 and 27.15, and Strongly Overvalued above 27.15. The current Forward EV/EBIT of 28.84 falls within the Strongly Overvalued range.
1.23
PS
Walmart Inc. (WMT) has a current PS of 1.23. The 5-year average PS is 0.77. The thresholds are as follows: Strongly Undervalued below 0.41, Undervalued between 0.41 and 0.59, Fairly Valued between 0.96 and 0.59, Overvalued between 0.96 and 1.14, and Strongly Overvalued above 1.14. The current Forward PS of 1.23 falls within the Strongly Overvalued range.
22.43
P/OCF
Walmart Inc. (WMT) has a current P/OCF of 22.43. The 5-year average P/OCF is 14.55. The thresholds are as follows: Strongly Undervalued below 7.86, Undervalued between 7.86 and 11.20, Fairly Valued between 17.89 and 11.20, Overvalued between 17.89 and 21.23, and Strongly Overvalued above 21.23. The current Forward P/OCF of 22.43 falls within the Strongly Overvalued range.
56.97
P/FCF
Walmart Inc. (WMT) has a current P/FCF of 56.97. The 5-year average P/FCF is 35.96. The thresholds are as follows: Strongly Undervalued below 11.97, Undervalued between 11.97 and 23.97, Fairly Valued between 47.95 and 23.97, Overvalued between 47.95 and 59.94, and Strongly Overvalued above 59.94. The current Forward P/FCF of 56.97 falls within the Overvalued range.
Walmart Inc (WMT) has a current Price-to-Book (P/B) ratio of 9.49. Compared to its 3-year average P/B ratio of 6.88 , the current P/B ratio is approximately 38.04% higher. Relative to its 5-year average P/B ratio of 6.07, the current P/B ratio is about 56.38% higher. Walmart Inc (WMT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.70%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.13% , the current FCF yield is about -100.00% lower.
9.49
P/B
Median3y
6.88
Median5y
6.07
1.70
FCF Yield
Median3y
2.70
Median5y
3.13
Competitors Valuation Multiple
The average P/S ratio for WMT's competitors is , providing a benchmark for relative valuation. Walmart Inc Corp (WMT) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 5.84%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WMT increased by 27.11% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 2.78 to 3.39.
The secondary factor is the Revenue Growth, contributed 5.84%to the performance.
Overall, the performance of WMT in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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