Walmart Stock To $80?

Our multi-factor assessment suggests that it may be time to sell WMT stock. We have, overall, a pessimistic view of the stock, and a price of $80 may not be out of reach. We believe there are a few things to fear in WMT stock given its overall Moderate operating performance and financial condition. But keeping in mind its High valuation, we think that the stock is Unattractive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $912 Bil in market cap, Walmart provides retail and wholesale services worldwide through supercenters, supermarkets, warehouse clubs, and discount stores across U.S., international markets, and membership-based clubs.

[1] Valuation Looks High

This table highlights how WMT is valued vs broader market. For more details see: WMT Valuation Ratios

[2] Growth Is Moderate

• Walmart has seen its top line grow at an average rate of 5.4% over the last 3 years
• Its revenues have grown 4.3% from $674 Bil to $703 Bil in the last 12 months
• Also, its quarterly revenues grew 5.8% to $179 Bil in the most recent quarter from $170 Bil a year ago.

This table highlights how WMT is growing vs broader market. For more details see: WMT Revenue Comparison

[3] Profitability Appears Very Weak

• WMT last 12 month operating income was $29 Bil representing operating margin of 4.1%
• With cash flow margin of 5.8%, it generated nearly $41 Bil in operating cash flow over this period
• For the same period, WMT generated nearly $23 Bil in net income, suggesting net margin of about 3.3%

This table highlights how WMT profitability vs broader market. For more details see: WMT Operating Income Comparison

[4] Financial Stability Looks Strong

• WMT Debt was $68 Bil at the end of the most recent quarter, while its current Market Cap is $912 Bil. This implies Debt-to-Equity Ratio of 7.5%
• WMT Cash (including cash equivalents) makes up $11 Bil of $289 Bil in total Assets. This yields a Cash-to-Assets Ratio of 3.7%

[5] Downturn Resilience Is Very Strong

WMT has been much more resilient than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• WMT stock fell 26.0% from a high of $53.29 on 21 April 2022 to $39.43 on 17 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 28 July 2023
• Since then, the stock increased to a high of $116.79 on 15 December 2025 , and currently trades at $114.36

 
2020 Covid Pandemic

• WMT stock fell 13.1% from a high of $39.93 on 10 March 2020 to $34.68 on 12 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 18 March 2020

 
2008 Global Financial Crisis

• WMT stock fell 26.5% from a high of $21.06 on 11 September 2008 to $15.47 on 4 February 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 22 May 2012

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