Walmart Inc. (WMT) Intrinsic Value & DCF Valuation
Discount Stores · NASDAQ
Current Price
$121.04
Intrinsic Value
Outside reliable range
What Is Walmart Inc.'s Intrinsic Value?
Our base-case DCF model produces an intrinsic value estimate for Walmart Inc. (WMT) that falls outside the range we consider reliable, so treat any single number with extra caution. This usually happens with unusual cash flow patterns or rapid recent changes in the business.
How our DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Walmart Inc. (WMT) Undervalued?
Because the model output for WMT is outside our reliability range, we do not give an undervalued or overvalued read here. Use the calculator below to test your own assumptions instead.
COMPETITIVE MOAT
↑Vast Store Network
Walmart's extensive physical footprint provides unparalleled reach and convenience for customers, making it difficult for competitors to replicate its accessibility.
↑Supply Chain Dominance
Its highly efficient and integrated supply chain allows for cost leadership and product availability, a significant barrier to entry for rivals.
↑Delivery Expansion
Partnerships like the one with Subway enhance its 30-minute delivery service, integrating meal solutions and expanding its appeal beyond traditional groceries.
INVESTMENT RISKS
↓Intensifying Competition
Online retailers and specialized grocery delivery services continue to challenge Walmart's market share, requiring constant innovation and investment.
↓Labor and Automation
Shareholder rejection of AI impact reports suggests potential friction in adopting automation, which could affect efficiency and labor relations.
↓Evolving Consumer Habits
Shifting preferences towards niche online retailers and demand for personalized experiences necessitate continuous adaptation of its offerings.
Base case
WMT base case valuation
Base case assumptions: 9.0% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the WMT valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Walmart Inc. respond.
Open DCF Calculator for WMTCompany Overview
Walmart Inc., established in 1945 and based in Bentonville, Arkansas, operates as a global retail powerhouse, having officially adopted its current name in February 2018, formerly Wal-Mart Stores, Inc. The company's diverse operations, encompassing retail, wholesale, and e-commerce, are managed across three primary divisions: Walmart U.S., Walmart International, and Sam's Club. Its extensive physical presence includes a variety of store formats such as supercenters, supermarkets, hypermarkets, membership-only warehouse clubs (like Sam's Club), cash-and-carry outlets, and discount stores, primarily operating under the Walmart and Walmart Neighborhood Market banners. Digitally, the company engages customers through numerous e-commerce platforms, including walmart.com.mx, walmart.ca, flipkart.com, and PhonePe, as well as via dedicated mobile applications. Walmart offers an exceptionally broad range of products and services. Its inventory covers groceries and daily consumables, such as dairy, meats, baked goods, deli items, fresh produce, various packaged foods (dry, chilled, or frozen), alcoholic and non-alcoholic beverages, floral items, snacks, candies, health and beauty aids, paper products, laundry and home care essentials, baby care, and pet supplies, alongside fuel and tobacco. Furthermore, it features a comprehensive health and wellness segment, providing pharmacy, optical, and hearing services, over-the-counter medications, and other medical products. For home and personal needs, shoppers can find items ranging from home improvement goods, outdoor living products, gardening supplies, furniture, apparel, and jewelry, to tools, power equipment, housewares, toys, seasonal items, mattresses, and automotive services like tire and battery centers. The electronics department includes consumer electronics, accessories, software, video games, office supplies, appliances, and third-party gift cards. Beyond merchandise, Walmart provides a suite of financial services. These include digital payment platforms, money transfer options, bill payment services, money orders, check cashing, prepaid access solutions, co-branded credit cards, installment lending, and earned wage access programs. The company also markets several proprietary brands, notably Allswell, Athletic Works, Equate, and Free Assembly.
Financial Metrics — WMT Stock Valuation Data
Revenue/Share (TTM)
$91.02
FCF/Share (TTM)
$1.58
ROIC (TTM)
11.9%
ROE (TTM)
24.3%
P/FCF
76.7x
EV/EBITDA
21.3x
FCF Yield
1.30%
Debt/Equity
0.79x
Based on trailing twelve-month data, WMT shows a free cash flow per share of $1.58 and a ROIC of 11.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 76.7x and FCF yield of 1.30% are important context metrics when evaluating WMT's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of WMT?
Walmart Inc. currently generates $1.58 in free cash flow per share. At the current price of $121.04, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is WMT undervalued?
WMT trades at a P/FCF ratio of 76.7x with a free cash flow yield of 1.30%. This elevated P/FCF suggests the market is pricing in significant future growth. However, whether WMT is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value WMT stock using DCF?
To perform a DCF valuation on Walmart Inc.: (1) Start with the trailing free cash flow per share ($1.58) as the base, (2) project future FCF growth over 5-10 years based on Discount Stores industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting WMT's risk profile — with a debt-to-equity of 0.79x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to WMT?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Walmart Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Discount Stores trends, then discounting those amounts to today's dollars. WMT's ROIC of 11.9% shows moderate capital returns.
How does WACC affect WMT stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For WMT, with a debt-to-equity ratio of 0.79x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 21.3x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See WMT PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Consumer Defensive valuationsDCF and P/E value WMT with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.