Is Walmart, Inc. overvalued or undervalued?

As of 17 October 2025, Walmart, Inc. has moved from expensive to very expensive in valuation grade. The company appears overvalued based on its current metrics, including a P/E ratio of 37, a Price to Book Value of 9.31, and an EV to EBITDA of 19.11. In comparison, Costco Wholesale Corp. has a significantly higher P/E of 54.95, while O'Reilly Automotive, Inc. shows a P/E of 37.33, indicating that Walmart's valuation is on the higher end relative to its peers.
Despite recent strong stock performance, with a 1-year return of 33.18% compared to the S&P 500's 14.08%, the long-term outlook is concerning, as Walmart has underperformed over 3 and 5 years with returns of -17.99% and -25.55%, respectively. This suggests that while short-term gains may be appealing, the overall valuation does not justify the current price levels.