Highly Regarded

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

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

17% Premium TTM fundamentals · sector averages from covered peers

WMT trades at 39.9× TTM earnings — a 17% premium to its Consumer Staples sector average of 34.1× in our coverage.

The Numbers

P/E (TTM)

39.9×

Sector avg: 34.1×

P/S (TTM)

1.3×

Sector avg: 3.6×

Market Cap

$910.35B

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 $114.22 39.9×
COST $940.79 50.4×
KO $81.54 28.9×
PEP $137.10 22.8×

Is the Premium Justified?

July 12, 2026

Walmart's P/E of 39.8x is slightly above the consumer staples sector average of 35.3x. This premium is largely justified by the company's successful omnichannel strategy, which includes significant e-commerce growth and the expansion of its marketplace. Walmart continues to invest in technology and supply chain efficiencies, enhancing both customer experience and operational leverage. Its strong brand recognition, extensive physical footprint, and ability to offer competitive pricing contribute to a resilient market position, attracting a broad customer base. Recent earnings reports have consistently highlighted solid revenue growth and profitability, even amidst a challenging retail environment. These factors, combined with ongoing digital transformation efforts, support its valuation relative to the sector average, despite the highly competitive retail landscape.

Sources

Frequently Asked Questions

Is WMT overvalued or undervalued?
On trailing-twelve-month earnings, WMT trades at 39.9x versus a Consumer Staples sector average of 34.1x in our coverage — a 17.3% 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

COST PG PEP KO