WMT
Walmart Inc.Consumer Defensive / Discount StoresINTACTWalmart Inc. engages in the operation of retail and wholesale stores and clubs, ecommerce websites, and mobile applications worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club U.S. It operates supercenters, supermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; and ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites. It offers grocery items, including dry grocery, snacks, dairy, meat, produce, deli and bakery, frozen foods, alcoholic and nonalcoholic beverages, as well as consumables, such as health and beauty aids, pet supplies, household chemicals, paper goods, and baby products; and fuel and other categories. In addition, it is involved in the provision of health and wellness products covering pharmacy, optical and hearing services, over-the-counter drugs, and protein and nutrition products; and home, hardlines, and seasonal items, including home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, and mattresses. Further, the company offers consumer electronics and accessories, software, video games, office supplies, appliances, and third-party gift cards. Additionally, it operates digital payment platforms; offers financial services and related products, including money transfers, bill payments, money orders, check cashing, prepaid access, co-branded credit cards, installment lending, and earned wage access; and markets lines of merchandise under private and licensed brands. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas.
Price vs. Intrinsic Value Corridor
Overvalued vs DCF ($9.06)Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.
2-Stage Discounted Cash Flow (DCF) Workbench
Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.
| Year | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Projected FCF ($M) | $7,506 | $7,904 | $8,322 | $8,764 | $9,228 | $9,643 | $10,077 | $10,531 | $11,005 | $11,500 |
| Present Value (PV) | $6,886 | $6,652 | $6,426 | $6,208 | $5,998 | $5,750 | $5,513 | $5,285 | $5,067 | $4,858 |
Benjamin Graham & Buffett Value Models
Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.
Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.
Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.
True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.
Reverse DCF: Market Growth Expectation
SPECULATIVE BARRIERAt the current price of $107.15, the market is assuming the business will compound Free Cash Flow at 29.7% per year for the next decade with a 9% hurdle rate.
Surveil WMT with Mathematical Margin of Safety Rules
Set non-negotiable floor rules for Walmart Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.
ROIC > 15% • Margin > 15% • D/E < 0.5x
Current Margin 3.5% • Floor > 10%
Altman-Z > 2.6 • Current Ratio > 1.5x
Frequently Asked Questions: Walmart Inc. (WMT) Intrinsic Valuation
Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Walmart Inc..
Related Consumer Defensive Value Stocks & Sector Peers
Compare Walmart Inc. with audited intrinsic valuation models across the Consumer Defensive sector.
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