One-glance verdict
Overvalued
$35.60 our estimate vs market $104.26
Wall Street consensus: $126.78 (256.1% higher than our fair-value estimate)
193% above our estimate, beyond the bull case
Fundamentals snapshot
Walmart Inc.
WMT · NMS · Consumer Defensive · Discount Stores
Current price
$104.26
52-week range
$98.88 - $135.16
Market cap
$829.71B
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 2.9% above its 5-year average P/E.
What this company does
Walmart Inc.
Walmart is a massive retail company that sells almost everything, from groceries and clothing to electronics, through its superstores, Sam's Club warehouses, and online. The company makes most of its money by selling a very high volume of everyday items at low prices, making it a go-to store for millions of families, especially when they need to stretch their budget.
How the company got here
Sam Walton opened the first Walmart in 1962 in Rogers, Arkansas, with a simple idea: sell more for less. This focus on low prices helped the company grow quickly, and by 1970, it was a publicly traded company listed on the New York Stock Exchange. A major turning point was the opening of the first Supercenter in 1988, which combined a grocery store with general merchandise under one roof. The company expanded internationally in 1991, starting with a store in Mexico City, and now operates in numerous countries.
What it actually does
Walmart is a global retailer that sells a huge variety of products at low prices. You can find everything from groceries and clothing to electronics and furniture in their stores and online. The company operates several types of stores, including massive Supercenters, smaller Neighborhood Markets for groceries, and Sam's Club warehouses. Their business is built on a strategy of "Every Day Low Price," which means they focus on keeping their operating costs (the expenses of running the business) low so they can pass those savings on to customers.
Walmart U.S.
This is the company's largest business segment by far, making up well over half of its total revenue (the money brought in from sales). It includes all the Walmart stores in the United States, such as Supercenters, Discount Stores, and Neighborhood Markets, as well as the U.S. e-commerce website. The main customer is anyone looking for low prices on a wide range of goods, with groceries being the single biggest category of items sold. This part of the business is the main engine of the company, serving millions of customers across the country every week.
Walmart International
This segment includes all of Walmart's stores and online operations outside of the United States. It operates in many countries, including Mexico, Canada, and China, and makes up a significant, but smaller, piece of the company's total sales compared to the U.S. business. Customers in these countries shop at Walmart for the same reasons as U.S. shoppers: a wide selection of products at low prices. The international business is an important area of growth for the company as it looks for new markets to serve.
Sam's Club U.S.
Sam's Club is a membership-only warehouse club, which means customers pay an annual fee to shop there. It sells items in bulk quantities to both small business owners and individual families, often at lower prices than you'd find for single items in a regular store. This segment is the smallest of the three but still brings in a substantial amount of revenue for Walmart. The membership fee provides a steady stream of income, and the business model encourages customers to buy large amounts at once.
What management is betting on now
Walmart is heavily investing in its e-commerce and delivery services to better compete with online retailers, using its physical stores as local hubs to fulfill online orders quickly. The company is also growing its digital advertising business, called Walmart Connect, which sells ad space to brands on its website and in its stores, creating a new, high-profit source of revenue. Another key focus is expanding its health and wellness services, offering affordable options for pharmacy, optical, and basic medical care in its stores. Finally, the company is focused on growing its membership programs, like Walmart+, to increase customer loyalty and gather more data on shopping habits.
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 $104.26
Wall Street consensus is the average analyst price target: $126.78 (256.1% higher than our fair-value estimate).
Our most-likely fair value is $35.60 a share — about 65.9% below today's price of $104.26, 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 $8.58B 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 $24.16B 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 2.9% 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)
37.78x
Forward P/E
32.32x
P/B
8.43x
P/S
1.13x
EV/EBITDA
20.36x
PEG ratio
3.54x
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