WMTNEUTRAL

WMT P/E Ratio Analysis

37.5x

Higher than 100% of Consumer Defensive sector peers

Updated 1036h ago·SEC filings & market data

Key Takeaway

The price-to-earnings (P/E) ratio of 37.5x means investors are paying $37.50 for every $1 of Walmart’s current annual earnings.

Sector Performance

100th percentile

WMT

37.5x

Sector Median

14.0x

Sector Avg

19.4x

Prior Period

36.4x(Sep 2026)

↓ Declining

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Deep Analysis

The price-to-earnings (P/E) ratio of 37.5x means investors are paying $37.50 for every $1 of Walmart’s current annual earnings.

That level is far above the Consumer Defensive sector median of 14.0x, placing Walmart at the 100th percentile among sector peers — the most expensive on this measure. The ratio has been stable over the last eight quarters, with a year-over-year decrease of 3.9% but a quarter-over-quarter increase of 2.9%. This combination of a steep premium combined with a flat trend suggests the market expects sustained above-average earnings growth, leaving little room for disappointment. Any shortfall in profit could lead to a sharp valuation reset, making the stock riskier than its sector counterparts. This metric directly supports the CAUTIOUS overall verdict, as the

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 37.5x 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.