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 39.50 is considered Overvalued compared with the five-year average of 25.77. The fair price of Walmart Inc (WMT) is between 67.55 to 99.70 according to relative valuation methord. Compared to the current price of 112.73 USD , Walmart Inc is Overvalued By 13.08%.
Relative Value
Fair Zone
67.55-99.70
Current Price：112.73
13.08%
Overvalued
39.50
PE
1Y
3Y
5Y
20.12
EV/EBITDA
Walmart Inc. (WMT) has a current EV/EBITDA of 20.12. The 5-year average EV/EBITDA is 13.93. The thresholds are as follows: Strongly Undervalued below 8.60, Undervalued between 8.60 and 11.27, Fairly Valued between 16.59 and 11.27, Overvalued between 16.59 and 19.26, and Strongly Overvalued above 19.26. The current Forward EV/EBITDA of 20.12 falls within the Strongly Overvalued range.
28.90
EV/EBIT
Walmart Inc. (WMT) has a current EV/EBIT of 28.90. The 5-year average EV/EBIT is 20.08. The thresholds are as follows: Strongly Undervalued below 12.47, Undervalued between 12.47 and 16.28, Fairly Valued between 23.88 and 16.28, Overvalued between 23.88 and 27.69, and Strongly Overvalued above 27.69. The current Forward EV/EBIT of 28.90 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 0.78. The thresholds are as follows: Strongly Undervalued below 0.40, Undervalued between 0.40 and 0.59, Fairly Valued between 0.97 and 0.59, Overvalued between 0.97 and 1.17, and Strongly Overvalued above 1.17. The current Forward PS of 1.23 falls within the Strongly Overvalued range.
22.84
P/OCF
Walmart Inc. (WMT) has a current P/OCF of 22.84. The 5-year average P/OCF is 14.82. The thresholds are as follows: Strongly Undervalued below 8.06, Undervalued between 8.06 and 11.44, Fairly Valued between 18.20 and 11.44, Overvalued between 18.20 and 21.58, and Strongly Overvalued above 21.58. The current Forward P/OCF of 22.84 falls within the Strongly Overvalued range.
60.06
P/FCF
Walmart Inc. (WMT) has a current P/FCF of 60.06. The 5-year average P/FCF is 36.50. The thresholds are as follows: Strongly Undervalued below 11.59, Undervalued between 11.59 and 24.04, Fairly Valued between 48.96 and 24.04, Overvalued between 48.96 and 61.41, and Strongly Overvalued above 61.41. The current Forward P/FCF of 60.06 falls within the Overvalued range.
Walmart Inc (WMT) has a current Price-to-Book (P/B) ratio of 9.35. Compared to its 3-year average P/B ratio of 6.99 , the current P/B ratio is approximately 33.80% higher. Relative to its 5-year average P/B ratio of 6.14, the current P/B ratio is about 52.29% higher. Walmart Inc (WMT) has a Forward Free Cash Flow (FCF) yield of approximately 1.70%. Compared to its 3-year average FCF yield of 2.70%, the current FCF yield is approximately -37.15% lower. Relative to its 5-year average FCF yield of 3.06% , the current FCF yield is about -44.52% lower.
9.35
P/B
Median3y
6.99
Median5y
6.14
1.70
FCF Yield
Median3y
2.70
Median5y
3.06
Competitors Valuation Multiple
The average P/S ratio for WMT's competitors is 2.31, providing a benchmark for relative valuation. Walmart Inc Corp (WMT) exhibits a P/S ratio of 1.23, which is -46.71% above the industry average. Given its robust revenue growth of 5.84%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WMT increased by 16.48% 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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Frequently Asked Questions
Is Walmart Inc (WMT) currently overvalued or undervalued?
Walmart Inc (WMT) is now in the Overvalued zone, suggesting that its current forward PE ratio of 39.50 is considered Overvalued compared with the five-year average of 25.77. The fair price of Walmart Inc (WMT) is between 67.55 to 99.70 according to relative valuation methord. Compared to the current price of 112.73 USD , Walmart Inc is Overvalued By 13.08% .
What is Walmart Inc (WMT) fair value?
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. The fair price of Walmart Inc (WMT) is between 67.55 to 99.70 according to relative valuation methord.
How does WMT's valuation metrics compare to the industry average?
The average P/S ratio for WMT's competitors is 2.31, providing a benchmark for relative valuation. Walmart Inc Corp (WMT) exhibits a P/S ratio of 1.23, which is -46.71% above the industry average. Given its robust revenue growth of 5.84%, this premium appears unsustainable.
What is the current P/B ratio for Walmart Inc (WMT) as of Jan 07 2026?
As of Jan 07 2026, Walmart Inc (WMT) has a P/B ratio of 9.35. This indicates that the market values WMT at 9.35 times its book value.
What is the current FCF Yield for Walmart Inc (WMT) as of Jan 07 2026?
As of Jan 07 2026, Walmart Inc (WMT) has a FCF Yield of 1.70%. This means that for every dollar of Walmart Inc’s market capitalization, the company generates 1.70 cents in free cash flow.
What is the current Forward P/E ratio for Walmart Inc (WMT) as of Jan 07 2026?
As of Jan 07 2026, Walmart Inc (WMT) has a Forward P/E ratio of 39.50. This means the market is willing to pay $39.50 for every dollar of Walmart Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Walmart Inc (WMT) as of Jan 07 2026?
As of Jan 07 2026, Walmart Inc (WMT) has a Forward P/S ratio of 1.23. This means the market is valuing WMT at $1.23 for every dollar of expected revenue over the next 12 months.