Highly Regarded

Is Walmart Inc. (WMT) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Consumer Staples sector peers in our coverage

15% Premium TTM fundamentals · sector averages from covered peers

WMT trades at 41.5× TTM earnings — a 15% premium to its Consumer Staples sector average of 36.0× in our coverage.

The Numbers

P/E (TTM)

41.5×

Sector avg: 36.0×

P/S (TTM)

1.3×

Sector avg: 4.0×

Market Cap

$946.22B

EPS (TTM): $2.86

Revenue (TTM)

$703.06B

Net income: $23.30B

Consumer Staples Peer Comparison

How WMT's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
WMT This page $118.72 41.5×
COST $988.02 52.9×
KO $93.51 33.2×
PEP $131.24 21.9×

Is the Premium Justified?

October 11, 2026

Walmart's P/E of 38.9x is slightly above the consumer staples sector average of 35.5x. The company recently delivered strong Q2 FY27 earnings, surpassing both EPS and revenue estimates. A key driver of this premium valuation is Walmart's robust e-commerce growth, with global online sales increasing 23% and U.S. e-commerce sales up 24% in Q2 FY27. The success of its omnichannel strategy, including efficient store-fulfilled pickup and delivery and a growing online marketplace, has significantly contributed to its sustained digital transformation and market leadership. This consistent performance in a competitive retail landscape justifies its slightly elevated multiple.

Sources

Frequently Asked Questions

Is WMT overvalued or undervalued?
On trailing-twelve-month earnings, WMT trades at 41.5x versus a Consumer Staples sector average of 36.0x in our coverage — a 15.4% premium. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing WMT with its own Consumer Staples peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Consumer Staples names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Consumer Staples peers

PEP PG KO COST