Is Walmart, Inc. overvalued or undervalued?

As of 26 September 2025, the valuation grade for Walmart, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is overvalued, as evidenced by its P/E ratio of 37, which exceeds the industry average, and a PEG ratio of 2.97, suggesting that the stock is priced high relative to its growth prospects. Additionally, Walmart's EV to EBITDA stands at 19.11, further reinforcing the notion of overvaluation when compared to its peers.
In the peer comparison, Walmart's P/E ratio of 39.50 is notably higher than that of O'Reilly Automotive, Inc. at 37.33, and its EV to EBITDA is lower than Costco Wholesale Corp.'s 33.92, highlighting the competitive landscape in which it operates. Despite this overvaluation, Walmart has outperformed the S&P 500 in various time frames, with a 1Y return of 29.08% compared to the S&P 500's 15.64%, and a remarkable 3Y return of 135.69% versus 81.77%.