Is Walmart, Inc. overvalued or undervalued?

As of 15 May 2025, Walmart, Inc. has moved from a fair valuation to very expensive. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 37, an EV to EBITDA of 19.11, and a PEG ratio of 2.97, all of which suggest a premium valuation compared to its peers.
In comparison, Costco Wholesale Corp. has a P/E of 55.28 and an EV to EBITDA of 34.13, while Target Corp. stands at a more attractive P/E of 10.23 and an EV to EBITDA of 6.33. Despite Walmart's strong return on equity (ROE) of 25.26% and return on capital employed (ROCE) of 24.10%, the current valuation does not justify the high multiples. The recent stock performance shows Walmart outperforming the S&P 500 with a 1-year return of 44.12% compared to 10.26%, but this does not mitigate its overvaluation status.