WMT Valuation

Walmart Inc

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96.830

-1.13(-1.154%)1D

Overview
Forecast
Valuation
Earnings

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 35.26 is considered Overvalued compared with the five-year average of 24.91. The fair price of Walmart Inc (WMT) is between 65.97 to 93.16 according to relative valuation methord. Compared to the current price of 96.83 USD , Walmart Inc is Overvalued By 3.94%.

Relative Value

Fair Zone

65.97-93.16

Current Price：96.83

3.94%

Overvalued

35.26

Trailing

Forward

18.23

EV/EBITDA

Walmart Inc. (WMT) has a current EV/EBITDA of 18.23. The 5-year average EV/EBITDA is 13.50. The thresholds are as follows: Strongly Undervalued below 9.08, Undervalued between 9.08 and 11.29, Fairly Valued between 15.71 and 11.29, Overvalued between 15.71 and 17.92, and Strongly Overvalued above 17.92. The current Forward EV/EBITDA of 18.23 falls within the Strongly Overvalued range.

26.26

EV/EBIT

Walmart Inc. (WMT) has a current EV/EBIT of 26.26. The 5-year average EV/EBIT is 19.51. The thresholds are as follows: Strongly Undervalued below 13.23, Undervalued between 13.23 and 16.37, Fairly Valued between 22.65 and 16.37, Overvalued between 22.65 and 25.79, and Strongly Overvalued above 25.79. The current Forward EV/EBIT of 26.26 falls within the Strongly Overvalued range.

1.09

Walmart Inc. (WMT) has a current PS of 1.09. The 5-year average PS is 0.75. The thresholds are as follows: Strongly Undervalued below 0.43, Undervalued between 0.43 and 0.59, Fairly Valued between 0.91 and 0.59, Overvalued between 0.91 and 1.07, and Strongly Overvalued above 1.07. The current Forward PS of 1.09 falls within the Strongly Overvalued range.

21.05

P/OCF

Walmart Inc. (WMT) has a current P/OCF of 21.05. The 5-year average P/OCF is 14.06. The thresholds are as follows: Strongly Undervalued below 7.95, Undervalued between 7.95 and 11.01, Fairly Valued between 17.12 and 11.01, Overvalued between 17.12 and 20.17, and Strongly Overvalued above 20.17. The current Forward P/OCF of 21.05 falls within the Strongly Overvalued range.

59.88

P/FCF

Walmart Inc. (WMT) has a current P/FCF of 59.88. The 5-year average P/FCF is 34.78. The thresholds are as follows: Strongly Undervalued below 11.91, Undervalued between 11.91 and 23.34, Fairly Valued between 46.21 and 23.34, Overvalued between 46.21 and 57.64, and Strongly Overvalued above 57.64. The current Forward P/FCF of 59.88 falls within the Strongly Overvalued range.

Walmart Inc (WMT) has a current Price-to-Book (P/B) ratio of 8.57. Compared to its 3-year average P/B ratio of 6.49 , the current P/B ratio is approximately 32.00% higher. Relative to its 5-year average P/B ratio of 5.86, the current P/B ratio is about 46.33% higher. Walmart Inc (WMT) has a Forward Free Cash Flow (FCF) yield of approximately 1.76%. Compared to its 3-year average FCF yield of 2.69%, the current FCF yield is approximately -34.49% lower. Relative to its 5-year average FCF yield of 3.37% , the current FCF yield is about -47.83% lower.

8.57

P/B

Median3y

6.49

Median5y

5.86

1.76

FCF Yield

Median3y

2.69

Median5y

3.37

Competitors Valuation Multiple

The average P/S ratio for WMT's competitors is 2.62, providing a benchmark for relative valuation. Walmart Inc Corp (WMT) exhibits a P/S ratio of 1.09, which is -58.49% above the industry average. Given its robust revenue growth of 4.76%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Costco Wholesale Corp

O'Reilly Automotive Inc

MINISO Group Holding Ltd

2.24

18.89%

33.09B

Performance Decomposition

Market capitalization of WMT increased by 25.66% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 2.78 to 4.03.

The secondary factor is the Revenue Growth, contributed 4.76%to the performance.

Overall, the performance of WMT in the past 1 year is driven by Margin Expansion. Which is more sustainable.

4.76%

169.34B → 177.40B

Revenue Growth

44.96%

2.78 → 4.03

Margin Expansion

-24.06%

48.13 → 36.55

P/E Change

25.66%