WMTCAUTIOUS

WMT P/E Ratio Analysis

40.5x

Higher than 100% of Consumer Defensive sector peers

Updated 413h ago·SEC filings & market data

Key Takeaway

Trading at 40.5x, Walmart's price-to-earnings (P/E) ratio means investors are paying $40.50 for every $1 of annual earnings per share.

Sector Performance

100th percentile

WMT

40.5x

Sector Median

14.0x

Sector Avg

19.8x

Prior Period

39.4x(Aug 2026)

↓ Declining

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Deep Analysis

Trading at 40.5x, Walmart's price-to-earnings (P/E) ratio means investors are paying $40.50 for every $1 of annual earnings per share.

That is far above the Consumer Defensive sector median of 14.0x, placing the stock in the 100th percentile among peers — the highest valuation in the group. The P/E has been stable over the last eight quarters, with a year-over-year increase of +2.7% and a quarter-over-quarter increase of +2.6%. A stable but high premium suggests the market has consistently priced in strong growth expectations without giving investors a margin of safety. This combination of an extreme valuation level and a flat trend implies limited room for multiple expansion and elevated downside risk if earnings disappoint. This metric directly supports the overall CAUTIOUS verdict on Walmart.

Frequently Asked Questions

What does the P/E Ratio tell investors about WMT?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does WMT's P/E Ratio compare to its sector?

WMT's P/E Ratio of 40.5x compares to a Consumer Defensive sector median of 14.0x, placing it in the 100th percentile.

Who are WMT's closest peers by P/E Ratio?

The closest Consumer Defensive peers by P/E Ratio include: MO (14.0x), BTI (13.5x), BUD (13.1x), PM (23.1x), ABEV (3.2x).

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Learn More About P/E Ratio

DCF Valuation: How to Estimate What a Stock Is Actually Worth

Discounted Cash Flow is the most rigorous way to value a company. It's also the most misunderstood. Here's a plain-English walkthrough with a real example.

The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.