Walmart Inc. (WMT) Fair Value & PE Analysis
Discount Stores · NASDAQ
Current Price
$121.04
PE Ratio (TTM)
41.8x
Intrinsic Value
$129.86
+6.8% margin of safety
What Is Walmart Inc.'s Fair Value?
As of 2026-06-12, applying a 42.0x earnings multiple to Walmart Inc.'s (WMT) earnings per share of $2.89 yields a fair value estimate of $129.86 per share, versus a market price of $121.04.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $111.33 to $150.73. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · WMT intrinsic value (DCF view)
Is Walmart Inc. (WMT) Overvalued?
At $121.04, WMT trades about 6.8% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
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 PE valuation
Intrinsic Value
$129.86
Margin of safety
+6.8%
Expected annual return
+1.4%
Base case assumptions: 9.0% annual earnings growth, 42x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the WMT PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Walmart Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
41.8x
PEG Ratio
1.92
Earnings Yield
2.39%
ROE (TTM)
24.3%
Revenue/Share (TTM)
$91.02
Dividend Yield
0.80%
Debt/Equity
0.79x
Frequently Asked Questions
What is the PE ratio of WMT?
The trailing twelve-month PE ratio of WMT reflects how much investors pay per dollar of Walmart Inc.'s earnings. This metric is most useful when compared to Discount Stores peers and the company's own historical range.
Is WMT overvalued based on PE ratio?
WMT's PE of 41.8x combined with a PEG ratio of 1.92 provides a growth-adjusted perspective. A PEG near 1.0 suggests the PE ratio is reasonably justified by the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Discount Stores, a DCF analysis may be more appropriate.
How do I value WMT stock using PE ratio?
To value Walmart Inc. using PE: (1) Compare the current PE (41.8x) against the Discount Stores median to assess relative pricing, (2) check the PEG ratio (1.92) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of WMT?
WMT's PEG ratio is 1.92, calculated by dividing the PE ratio (41.8x) by the expected earnings growth rate. A PEG near 1.0 suggests the stock is fairly priced relative to growth. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for WMT stock valuation?
PE ratio gives a quick relative read — how WMT is priced versus Discount Stores peers. DCF provides an absolute value based on projected free cash flows. For WMT, with a strong ROE of 24.3%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See WMT DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Defensive valuationsP/E and DCF value WMT with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic 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.