Is Walmart, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Walmart, Inc. has moved from very expensive to expensive, indicating a shift in perception regarding its valuation. Based on the current metrics, Walmart appears to be overvalued. The P/E ratio stands at 37, which is higher than the peer average of 39.50 for Walmart itself, while the EV to EBITDA ratio is 19.11, also below the peer average of 20.0558. Additionally, the PEG ratio of 2.97 suggests that the stock may not be growing at a rate sufficient to justify its current price.
In comparison to its peers, Costco Wholesale Corp. has a significantly higher P/E ratio of 54.95, while O'Reilly Automotive, Inc. shows a P/E of 37.33, indicating that Walmart's valuation is relatively more attractive within the context of its competitors. However, the recent performance shows that Walmart has outperformed the S&P 500 with a 1-year return of 27.92% compared to the index's 13.36%, but it has significantly lagged over longer periods, with a 3-year return of -21.25% versus 81.39% for the S&P 500. This mixed performance further supports the view that Walmart is currently overvalued.