One-glance verdict
Overvalued
$35.60 our estimate vs market $107.14
Wall Street consensus: $127.72 (258.8% higher than our fair-value estimate)
201% above our estimate, beyond the bull case
Fundamentals snapshot
Walmart Inc.
WMT · NMS · Consumer Defensive · Discount Stores
Current price
$107.14
52-week range
$98.88 - $135.16
Market cap
$852.63B
Balance sheet
Watch
10.66x Adequate
Net debt $63.56B. 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 3.2% last year.
- Reward Returns 22.3% on equity, ahead of 16% of its peers.
- Risk Net debt grew 12.1% over 3 years.
- Risk Stock trades 5.7% above its 5-year average P/E.
What this company does
Walmart Inc.
Walmart is a giant retail company that makes money by selling a massive variety of goods, with groceries being the biggest category, through its superstores, Sam's Club warehouses, and online. Because it buys products in huge volumes, Walmart can offer low prices, which helps it maintain high sales even when customers are trying to save money. This scale is supported by a massive supply chain (the network for getting products from factories to store shelves), which is key to keeping its costs and prices down.
How the company got here
Sam Walton opened the first Walmart store in Rogers, Arkansas, in 1962 with a simple idea: offer the lowest possible prices by buying in bulk and running an efficient business. This focus on 'Everyday Low Price' helped the company grow rapidly, first across the rural South and then the entire United States. Key turning points included opening the first Sam's Club in 1983, a warehouse store for small businesses and families, and the first Supercenter in 1988, which combined a full grocery store with general merchandise. By 1990, it was the largest retailer in the U.S. and began expanding internationally a year later.
What it actually does
Walmart is a giant retailer that sells a huge variety of products to price-sensitive customers through different types of stores and websites. You can find almost anything there, from groceries like milk and bread to electronics, clothing, and home goods. The company's main strategy is to sell a massive volume of items at low prices, which it achieves by negotiating hard with suppliers (the companies that make the products) and maintaining a very efficient supply chain (the system of getting products from the factory to the store shelf). It also makes money from membership fees at Sam's Club, advertising from brands who want to promote their products in stores and online, and financial services like money transfers.
Walmart U.S.
This is Walmart's largest business segment by far, making up more than two-thirds of the company's total sales. It includes all the Walmart stores you see in the United States, such as the massive Supercenters, smaller Neighborhood Markets focused on groceries, and traditional Discount Stores. This segment sells everything from fresh produce and meat to apparel, electronics, and pharmacy items. Customers are everyday households and families looking for a one-stop shop to get what they need at a low cost.
Walmart International
This part of the company includes Walmart's stores and websites outside of the United States, operating in 19 countries including Mexico, Canada, China, and India. It's a significant chunk of the business, contributing nearly a fifth of total revenue. The stores in other countries are adapted to local tastes, so what you find in a Walmart in China or Mexico might be different from your local U.S. store, especially in the food aisles. This segment also includes major e-commerce (online shopping) businesses like Flipkart in India.
Sam's Club U.S.
Sam's Club is a warehouse club that requires customers to buy a membership to shop there. It makes up the smallest slice of Walmart's revenue, at around 13%. The stores are set up like large warehouses and sell items in bulk, which is great for small businesses and families looking to stock up and save money. A key difference from Walmart stores is that Sam's Club makes a significant portion of its profit from the annual membership fees, which allows it to sell goods very close to their actual cost.
What management is betting on now
Management is focused on becoming an 'omnichannel' retailer, which means seamlessly blending the experience of shopping in a physical store with shopping online. They are using their thousands of stores as mini-fulfillment centers for online order pickup and delivery, which helps them get products to customers faster and cheaper. The company is also investing heavily in technology like automation and data analytics (using computers to spot trends in sales data) to make its supply chain even more efficient. Finally, they are growing newer, higher-margin (more profitable) businesses like advertising on their website and offering more financial and health 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 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
FY2027 Q2
$7.47B
Revenue
$187.94B
Net income
$6.37B
Diluted EPS
0.80
Operating cash flow
$14.97B
Free cash flow
$7.47B
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $35.60 vs current price $107.14
Wall Street consensus is the average analyst price target: $127.72 (258.8% higher than our fair-value estimate).
Our most-likely fair value is $35.60 a share — about 66.8% below today's price of $107.14, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $63.6B. Interest coverage 10.7x.
Net debt
$63.56B
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 $75.09B Interest coverage 10.66x This is the baseline the peer rows are being compared against.
Total debt $19.20B Interest coverage 11.50x +8% vs WMT Has roughly the same debt cushion as WMT.
Total debt $10.23B Interest coverage 67.42x +533% vs WMT Carries about 6.3x more debt cushion than WMT.
Total debt $251.64B 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 $63.19B Interest coverage 8.66x -19% vs WMT Carries about 1.2x less debt cushion than WMT.
What you should know
The case for and against WMT
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.2% last year.
-
Returns 22.3% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 12.1% over 3 years.
-
Stock trades 5.7% 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)
38.82x
Forward P/E
33.16x
P/B
9.04x
P/S
1.16x
EV/EBITDA
20.88x
PEG ratio
4.09x
Profitability
How much profit each dollar creates
Gross margin
24.8%
Operating margin
3.5%
Net margin
3.0%
ROE
22.3%
ROA
6.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.72x
Current ratio
0.77x
Quick ratio
0.20x
Total debt
$75.09B
Total cash
$11.53B
Growth
How the business has been compounding
Revenue TTM
$735.84B
Revenue 5Y CAGR
5.6%
EPS TTM
2.76
EPS 5Y CAGR
24.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$42.92B
Free CF TTM
$14.92B
FCF margin
2.0%
Dividend
Shareholder payout
Yield
0.9%
Payout ratio
35.0%
Last ex-div date
2026-12-11