Walmart's 43.28x earnings multiple makes the stock impossible to buy for a long time. Its historical median is 31.13x, and even at 30x it would not be attractive. x.comÂ
Techquity
Technology Investor, Fundamental Research
Walmart's valuation is too high for a grocery and household retailer. At about 36 times next year's earnings, it exceeds its five-year norm of 25 and the roughly 20 times this business should command; Target trades near 16 times. Stay away from Walmart here. x.comÂ
Walmart looks expensive against its earnings at $110.12. It trades at 39x earnings and 34x next year's, while the industry usually gets 18x. Applying 18x to next year's $3.28 EPS, give or take 12%, gives a fair range of $51.95 to $66.12, putting the stock 67% above fair, with a PEG of 4.24. This is a levels-only read off reported earnings and revenue estimates, with no fundamental work. x.comÂ
Walmart may be setting up for a big bounce, with its pullback matching the pattern of its last two bottoms. The stock is down about 25% from its all-time high, as it was before both prior bottoms, which also showed RSI divergence. Its forward P/E has fallen from near 40 earlier this year to a more respectable 31, and it is holding just above the psychological $100 level near a prior breakout area. x.comÂ
Walmart's 41x P/E looks hard to justify when gas prices are going through the roof. x.comÂ
Walmart's P/E of about 50 is hard to justify with only about 5% growth, while Alphabet, Apple, Amazon, Meta and Nvidia trade at 20-45 times earnings and all grow far faster. x.comÂ
Walmart has the strongest fundamentals in retail, with $725B+ of revenue, exploding e-commerce and market-share gains while rivals bleed. It is a defensive cash-printing machine in a shaky economy, and analysts rate it a moderate buy with $140+ targets. x.comÂ
Walmart does not deserve 40x forward earnings, especially with comparable sales growth at its slowest in over six years. Per @negligible_cap, the stock fell 6% on decelerating comps and could eventually have a Target- or Nike-style moment as investors realize it can't hold that multiple forever. x.com x.comÂ
Walmart is a great company at a terrible price, trading near 38 times forward earnings while growth slows. Revenue and EPS beat, yet US comparable sales growth slowed to 2.6%, the weakest in six years, and the stock fell. Even after another 10% drop, it is not worth buying. x.comÂ
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Walmart is expensive at 40 times forward earnings on a 3% net margin. That is nearly double Nvidia's 21 times, even though Nvidia earns a 63% margin. x.comÂ