Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 7.91%, higher than industry average of 1.94%.

Growth Trajectory

Profitability

In the growth phase company makes 4.51% profit on every dollar of sales, lower than industry average of 5.92%.

Profitability Trajectory

Risk Profile

Investors expect at least 10.07% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
291.34B USD
Equity Value
229.05B USD
FCF Yield
21.50%
Average ROIC
14.42%
Cost of Capital
9.61%
P/E Ratio
35.42x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues693.15B USD648.13B USD
Operating Income or EBIT31.11B USD24.53B USD
Interest Expense2.74B USD2.68B USD
Book Value Of Equity90.11B USD83.86B USD
Book Value Of Debt65.01B USD61.32B USD
Cash and Marketable Securities9.43B USD9.87B USD
Number of Shares Outstanding7.97B--
Minority interests6.71B USD0 USD
Current Stock Price102.16 USD--
Effective Tax Rate26.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
+5.01%
6.94%Company
vs
1.93%Industry
Above Industry
Operating Margin
-1.44%
4.48%Company
vs
5.92%Industry
Below Industry
Walmart Inc. shows above-average growth compared to industry peers, suggesting strong market position and growth opportunities.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 72% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 209.20B USD Add
Present Value (Cash Flow Over Next 10 Years) 82.14B USD Add
Value of Operating Assets 291.34B USD Sub-total
Debt 65.01B USD Subtract
Minority Interests 6.71B USD Subtract
Cash 9.43B USD Add
Value of Equity 229.05B USD Sub-total
Number of Shares 7.97B shares Divisor
Estimated Value per Share (Fair Value) 28.72 USD Total
Current Market Price 102.28 USD Reference

Financial Projections

Total FCF Present Value
82.14B USD
Avg Revenue Growth
5.88%
Avg Operating Margin
4.51%
Avg ROIC
14.42%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue726.42B USD783.84B USD845.81B USD912.67B USD984.82B USD1.05T USD1.12T USD1.19T USD1.25T USD1.31T USD1.37T USD
Growth Rate 4.80% 7.90% 7.90% 7.90% 7.90% 7.24% 6.58% 5.92% 5.26% 4.59% 4.59%
PROFITABILITY
Operating Income32.60B USD35.30B USD38.15B USD41.23B USD44.56B USD47.79B USD50.94B USD53.96B USD56.80B USD59.41B USD62.14B USD
Operating Margin 4.48% 4.50% 4.51% 4.51% 4.52% 4.52% 4.52% 4.52% 4.52% 4.52% 4.52%
EBIT (1-tax)24.13B USD26.12B USD28.23B USD30.51B USD32.98B USD35.46B USD37.90B USD40.25B USD42.48B USD44.56B USD46.60B USD
CASH FLOW
Reinvestment17.66B USD19.05B USD20.56B USD22.18B USD21.94B USD19.33B USD18.54B USD17.44B USD16.05B USD16.79B USD24.28B USD
Free Cash Flow6.46B USD7.06B USD7.67B USD8.32B USD11.04B USD16.12B USD19.35B USD22.80B USD26.42B USD27.76B USD22.32B USD
Terminal Value--------------------527.85B USD
Present Value5.87B USD5.83B USD5.75B USD5.67B USD6.83B USD9.08B USD9.95B USD10.72B USD11.39B USD11.00B USD—
EFFICIENCY
ROIC 16.56% 15.99% 15.47% 15.03% 14.64% 14.35% 14.22% 14.12% 14.04% 13.99% 8.83%
Cost of Capital 10.07% 10.07% 10.07% 10.07% 10.07% 9.82% 9.57% 9.32% 9.07% 8.83% 8.83%
Sales/Capital 3.25x 3.25x 3.25x 3.25x 3.25x 3.59x 3.59x 3.59x 3.59x 3.59x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)