Walmart Inc. ranks in an above-average position in its peer group, with a broadly solid profile across the main structural dimensions. Trend conditions have deteriorated, without yet reaching an extreme downside state.
Peer-relative scores, weakest to strongest
Walmart is the world’s largest retailer, operating a vast network of hypermarkets, discount department stores, and grocery outlets. The company generates over €700bn in annual revenue and serves millions of customers globally.
Walmart has strong profitability, with a ROIC of 15.5% and net income of €21.9bn, indicating efficient operations. However, the company’s valuation premium—forward P/E of 38.8x—is only partly supported, as Walmart’s returns are solid but not leading in the sector, and the premium is not fully justified by peer-beating fundamentals.
Walmart’s forward P/E of 38.8x is well above the peer median of 25.1x. Its quality score of 51/100 is slightly above the sector median but does not reach the top tier. The stability score of 81/100 indicates a strong risk profile, though this is common among large retailers. Positive analyst sentiment and price target upgrades provide some support, but Walmart’s quality and growth metrics do not fully justify such a high valuation premium.
Recent external factors add complexity. Walmart’s operational resilience—shown by double-digit operating income growth and strong revenue momentum—supports its execution. AI-driven supply chain initiatives and private label expansion enhance Walmart’s competitive position. However, the premium has not stabilized, as sector peers with higher quality and growth scores (notably Costco) trade at similar or lower valuation multiples.
Compared to peers, Walmart’s profitability and stability are strong, but its quality and growth scores are not among the highest in the sector. The valuation premium is higher than many peers, with only Costco commanding a similar premium—yet Costco’s quality and growth metrics are significantly higher. This difference is partly due to Walmart’s scale and operational footprint, but the premium remains at the higher end of the sector range.
A more justified premium would require Walmart’s quality and growth scores to reach the sector’s top quartile, along with continued operational outperformance and successful execution of AI and private label strategies. Until then, Walmart’s valuation premium is not fully supported.
Break down WMT's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.