Highly Regarded

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

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

In Line TTM fundamentals · sector averages from covered peers

WMT trades at 38.7× TTM earnings — roughly in line with its Consumer Staples sector average of 34.7×.

The Numbers

P/E (TTM)

38.7×

Sector avg: 34.7×

P/S (TTM)

1.3×

Sector avg: 3.7×

Market Cap

$881.50B

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 $110.60 38.7×
COST $950.43 50.9×
KO $82.96 29.4×
PEP $143.29 23.9×

Is the Multiple Justified?

July 6, 2026

Walmart's P/E of 38.8x is slightly above the consumer staples sector average of 35.7x, reflecting its robust market position and consistent performance. The company's Q1 2027 results (reported May 2026) showed revenue exceeding estimates with a 7.4% year-over-year increase, driven by a significant 26% surge in global e-commerce sales and strong U.S. comparable sales growth. Walmart has consistently outpaced the consumer retailing industry in earnings growth and has reaffirmed its full-year guidance for sales and operating income. Its strategic investments in omnichannel retail and its ability to adapt to evolving consumer spending trends justify this premium, demonstrating resilience and continued growth in a competitive retail landscape.

Sources

Frequently Asked Questions

Is WMT overvalued or undervalued?
On trailing-twelve-month earnings, WMT trades at 38.7x versus a Consumer Staples sector average of 34.7x in our coverage — a 11.3% 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

PG COST KO PEP