One-glance verdict
Overvalued
$35.44 our estimate vs market $109.33
Wall Street consensus: $138.27 (290.1% higher than our fair-value estimate)
208% above our estimate, beyond the bull case
Fundamentals snapshot
Walmart Inc.
WMT · NMS · Consumer Defensive · Discount Stores
Current price
$109.33
52-week range
$95.29 - $135.16
Market cap
$870.06B
Balance sheet
Watch
10.66x Adequate
Net debt $64.82B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.7% last year.
- Reward Returns 24.1% on equity, ahead of 50% of its peers.
- Risk Net debt grew 12.1% over 3 years.
- Risk Stock trades 6.0% above its 5-year average P/E.
What this company does
Walmart Inc.
Walmart is a giant global retailer known for its supercenters and Sam's Club stores, making most of its money from selling groceries and everyday household items. Because it focuses on low-priced essentials that people always need, its sales tend to be steady even when the economy is slow. The company's massive supply chain (the complex network for getting products from factories to store shelves) is the key to its ability to keep prices low for customers.
How the company got here
Sam Walton opened the first Walmart in 1962 in Rogers, Arkansas, with a simple idea: sell products at the lowest possible price. This focus on low prices, which the company calls "Everyday Low Prices," was a revolutionary concept that reshaped the retail industry. The company grew rapidly, opening more stores across the United States and going public in 1970. Key turning points include the opening of the first Sam's Club in 1983, a members-only warehouse store, and the first Supercenter in 1988, which combined a full grocery store with general merchandise. In the 1990s, Walmart expanded internationally and has since become one of the largest private employers in the world.
What it actually does
Walmart is a giant retailer that sells a vast range of products to millions of customers every week. Think of it as a one-stop shop where you can buy groceries, clothing, electronics, toys, furniture, and even get your eyes checked or pick up a prescription. The company operates thousands of physical stores, including massive Supercenters, smaller Neighborhood Markets, and discount stores. It also has a large and growing online presence through its website and mobile app, offering services like home delivery and in-store pickup.
Walmart U.S.
This is Walmart's largest business segment, making up the majority of its total sales. It includes all the Walmart stores you see across the United States, from the huge Supercenters that sell everything to the smaller Neighborhood Markets that focus more on groceries. This segment makes money by buying products in massive quantities from suppliers and selling them to customers at a profit. Because of its immense size, it can negotiate very low prices from suppliers, which allows it to offer those low prices to shoppers.
Walmart International
This part of the company includes all of Walmart's stores and online operations outside of the United States. It operates in 18 countries, including Mexico, Canada, China, and India, often under different store names that are familiar to local shoppers. This segment's goal is to build strong local businesses that cater to the specific needs and preferences of customers in each country. It makes money in the same way as the U.S. business, by selling a wide variety of products, but it also adapts its offerings to fit local tastes and customs.
Sam's Club
Sam's Club is a membership-only warehouse club, which means customers pay an annual fee to be able to shop there. It sells products in bulk quantities at low prices, targeting both small businesses and families. A big part of how Sam's Club makes money is from those membership fees, which allows it to sell goods with a smaller markup (the difference between the cost to get a product and the price it's sold for). You'll find everything from groceries and electronics to office supplies, often sold in large packages.
What management is betting on now
Walmart is heavily focused on what it calls an "omnichannel" strategy, which means blending its physical stores and online business to create a seamless shopping experience. This involves using its thousands of stores as fulfillment centers for online orders, allowing for fast delivery and convenient pickup options. The company is also investing heavily in technology, like automation in its supply chain (the network of getting products from the supplier to the customer) and artificial intelligence to improve the online shopping experience. Another key priority is growing its other sources of income, such as selling advertising space on its website and offering financial services.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$6.28B
FY2025 Q3
$372.00M
FY2025 Q4
$6.44B
FY2026 Q1
$425.00M
FY2026 Q2
$6.52B
FY2026 Q3
$1.88B
FY2026 Q4
$6.10B
FY2027 Q1
$-1.95B
Revenue
$177.75B
Net income
$5.33B
Diluted EPS
0.67
Operating cash flow
$4.74B
Free cash flow
$-1.95B
Fetching…
Sources
Revenue
$190.66B
Net income
$4.24B
Diluted EPS
0.52
Operating cash flow
$14.11B
Free cash flow
$6.10B
Fetching…
Sources
Revenue
$179.50B
Net income
$6.14B
Diluted EPS
0.77
Operating cash flow
$9.10B
Free cash flow
$1.88B
Fetching…
Sources
Revenue
$177.40B
Net income
$7.03B
Diluted EPS
0.88
Operating cash flow
$12.94B
Free cash flow
$6.52B
Fetching…
Sources
Revenue
$165.61B
Net income
$4.49B
Diluted EPS
0.56
Operating cash flow
$5.41B
Free cash flow
$425.00M
Fetching…
Sources
Revenue
$180.55B
Net income
$5.25B
Diluted EPS
0.65
Operating cash flow
$13.53B
Free cash flow
$6.44B
Fetching…
Sources
Revenue
$169.59B
Net income
$4.58B
Diluted EPS
0.57
Operating cash flow
$6.56B
Free cash flow
$372.00M
Fetching…
Sources
Revenue
$169.34B
Net income
$4.50B
Diluted EPS
0.56
Operating cash flow
$12.11B
Free cash flow
$6.28B
Fetching…
Sources
Is it cheap or expensive?
Fair value $35.44 vs current price $109.33
Wall Street consensus is the average analyst price target: $138.27 (290.1% higher than our fair-value estimate).
Our most-likely fair value is $35.44 a share — about 67.6% below today's price of $109.33, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $64.8B. Interest coverage 10.7x.
Net debt
$64.82B
Interest coverage
10.66x
Walmart Inc.'s profit covers its interest bill about 10.7 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
WMT
BASELINE
Walmart Inc.
Total debt $75.55B Interest coverage 10.66x This is the baseline the peer rows are being compared against.
Total debt $10.23B Interest coverage 67.42x +533% vs WMT Carries about 6.3x more debt cushion than WMT.
Total debt $19.27B Interest coverage 11.50x +8% vs WMT Has roughly the same debt cushion as WMT.
Total debt $235.54B Interest coverage 35.17x +230% vs WMT Carries about 3.3x more debt cushion than WMT.
Total debt $24.19B Interest coverage 2.96x -72% vs WMT Carries about 3.6x less debt cushion than WMT.
Total debt $15.80B Interest coverage 9.56x -10% vs WMT Has roughly the same debt cushion as WMT.
What you should know
The case for and against WMT
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.7% last year.
-
Returns 24.1% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 12.1% over 3 years.
-
Stock trades 6.0% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
38.91x
Forward P/E
33.28x
P/B
9.23x
P/S
1.20x
EV/EBITDA
21.00x
PEG ratio
4.20x
Profitability
How much profit each dollar creates
Gross margin
25.0%
Operating margin
4.2%
Net margin
3.1%
ROE
24.1%
ROA
6.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.75x
Current ratio
0.77x
Quick ratio
0.19x
Total debt
$75.55B
Total cash
$10.73B
Growth
How the business has been compounding
Revenue TTM
$725.30B
Revenue 5Y CAGR
5.6%
EPS TTM
2.81
EPS 5Y CAGR
24.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$40.89B
Free CF TTM
$14.92B
FCF margin
2.1%
Dividend
Shareholder payout
Yield
0.9%
Payout ratio
33.5%
Last ex-div date
2026-08-21