* Note: Prices are in Million (M) USD.
Description:
Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. It also owns and operates Sam's Club retail warehouses.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $9,311 M
Debt : $67,205 M
EBITDA : $41,133 M
Net Debt (Debt - Cash): $57,894 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Consumer defensive
Industry: Discount stores
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 35.01
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $13,195 M
Average Revenue: $486,615 M
Revenue Converted To Free Cash Flow (%): 2.7%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $680,985 M
Revenue 4 Years Ago (2021-01-31): $559,151 M
Last 5 Years Average Revenue Growth: 4%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $8,081 M
Share Count 5 Years Ago (2021-01-31): $8,541 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.94
Trailing 12-Month Earnings Per Share (EPS): $2.60
Average Earnings Per Share (EPS): $2.77
Dividend Per Share (DPS): $1
Payout Ratio: 32%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 18.7%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $97
52-Week Low: $76
Threshold Price (15% Above 52-Week Low): $87
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $773,941 M
Since Market Cap is between 500B - 1 Trillion, 4 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 19 points to above Walmart Inc (WMT) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 12 Years Avg PE
34.32 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 12 Years Avg P/E (34.32)
× EPS ($2.77) = $95.07.
Last 12 Years Avg PE 34.32, Fair Value PE 12, Industry Based PE 20, Growth Based PE 4, RCFC Based PE 12.17, ROE Based PE 25, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 17.80. Value-Trades has assined P/E value 17.80. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.77.
The fair value of Walmart Inc (WMT) stock should be (17.80 x $2.77) = $49.3.
