Is Walmart, Inc. overvalued or undervalued?

As of 17 October 2025, Walmart, Inc. has moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company is currently overvalued, with a P/E ratio of 37, a Price to Book Value of 9.31, and an EV to EBITDA of 19.11. In comparison, its peers such as Costco Wholesale Corp. have a higher P/E of 54.95 and an EV to EBITDA of 33.92, while O'Reilly Automotive, Inc. shows a P/E of 37.33 and an EV to EBITDA of 25.50, suggesting that Walmart's valuation is not justified when viewed against its peers.
Despite recent strong performance, with a 1-year return of 33.18% compared to the S&P 500's 14.08%, the long-term outlook remains concerning, as Walmart has underperformed over 3 and 5-year periods, with returns of -17.99% and -25.55%, respectively. This trend reinforces the notion that Walmart's current valuation may not be sustainable given its recent performance relative to broader market benchmarks.