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 38.89 is considered Overvalued compared with the five-year average of 24.82. The fair price of Walmart Inc (WMT) is between 64.49 to 90.57 according to relative valuation methord. Compared to the current price of 103.73 USD , Walmart Inc is Overvalued By 14.54%.
Relative Value
Fair Zone
64.49-90.57
Current Price：103.73
14.54%
Overvalued
38.89
PE
1Y
3Y
5Y
Trailing
Forward
19.56
EV/EBITDA
Walmart Inc. (WMT) has a current EV/EBITDA of 19.56. The 5-year average EV/EBITDA is 13.45. The thresholds are as follows: Strongly Undervalued below 9.13, Undervalued between 9.13 and 11.29, Fairly Valued between 15.62 and 11.29, Overvalued between 15.62 and 17.78, and Strongly Overvalued above 17.78. The current Forward EV/EBITDA of 19.56 falls within the Strongly Overvalued range.
28.23
EV/EBIT
Walmart Inc. (WMT) has a current EV/EBIT of 28.23. The 5-year average EV/EBIT is 19.45. The thresholds are as follows: Strongly Undervalued below 13.30, Undervalued between 13.30 and 16.37, Fairly Valued between 22.52 and 16.37, Overvalued between 22.52 and 25.59, and Strongly Overvalued above 25.59. The current Forward EV/EBIT of 28.23 falls within the Strongly Overvalued range.
1.17
PS
Walmart Inc. (WMT) has a current PS of 1.17. The 5-year average PS is 0.75. The thresholds are as follows: Strongly Undervalued below 0.44, Undervalued between 0.44 and 0.59, Fairly Valued between 0.90 and 0.59, Overvalued between 0.90 and 1.06, and Strongly Overvalued above 1.06. The current Forward PS of 1.17 falls within the Strongly Overvalued range.
20.34
P/OCF
Walmart Inc. (WMT) has a current P/OCF of 20.34. The 5-year average P/OCF is 14.00. The thresholds are as follows: Strongly Undervalued below 8.08, Undervalued between 8.08 and 11.04, Fairly Valued between 16.96 and 11.04, Overvalued between 16.96 and 19.92, and Strongly Overvalued above 19.92. The current Forward P/OCF of 20.34 falls within the Strongly Overvalued range.
55.38
P/FCF
Walmart Inc. (WMT) has a current P/FCF of 55.38. The 5-year average P/FCF is 34.47. The thresholds are as follows: Strongly Undervalued below 12.26, Undervalued between 12.26 and 23.36, Fairly Valued between 45.58 and 23.36, Overvalued between 45.58 and 56.68, and Strongly Overvalued above 56.68. The current Forward P/FCF of 55.38 falls within the Overvalued range.
Walmart Inc (WMT) has a current Price-to-Book (P/B) ratio of 9.89. Compared to its 3-year average P/B ratio of 6.45 , the current P/B ratio is approximately 53.34% higher. Relative to its 5-year average P/B ratio of 5.83, the current P/B ratio is about 69.55% higher. Walmart Inc (WMT) has a Forward Free Cash Flow (FCF) yield of approximately 1.64%. Compared to its 3-year average FCF yield of 2.68%, the current FCF yield is approximately -38.82% lower. Relative to its 5-year average FCF yield of 3.41% , the current FCF yield is about -51.83% lower.
9.89
P/B
Median3y
6.45
Median5y
5.83
1.64
FCF Yield
Median3y
2.68
Median5y
3.41
Competitors Valuation Multiple
The average P/S ratio for WMT's competitors is 2.65, providing a benchmark for relative valuation. Walmart Inc Corp (WMT) exhibits a P/S ratio of 1.17, which is -55.97% above the industry average. Given its robust revenue growth of 2.54%, 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 34.61% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 30.16 to 44.33.
The secondary factor is the Revenue Growth, contributed 2.54%to the performance.
Overall, the performance of WMT in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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