Is Walmart, Inc. overvalued or undervalued?

As of 21 August 2025, the valuation grade for Walmart, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company appears overvalued based on its current 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 that Walmart is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Walmart's P/E ratio of 39.50 is notably higher than O'Reilly Automotive, Inc. at 37.33 and AutoZone, Inc. at 31.63, indicating a relative overvaluation in the retail sector. Additionally, while Walmart has shown strong returns, with a 1Y return of 31.09% compared to the S&P 500's 17.14%, this performance does not fully justify its current valuation levels.