Orin
WMTNasdaq·Discount Stores

Walmart Inc. WMT

Market cap $878.9BP/E 39.9× trailingGross margin 25.2%
$110.53
+0.41 (+0.37%)Wed close 16:00 ET
52-wk $98.88 – $135.16
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Orin's take
0.62conviction · moderate
Refreshed 28 Aug · take v8. A new filing or a print queues the next refresh.

Walmart's FY2026 (ended January 2026) fundamentals are durable — $713.2B in revenue (up 4.73% YoY), $2.73 EPS (up 13.28% YoY), and $41.6B in operating cash flow — but the stock still trades at 37.2x earnings, a 74.7% premium to the peer median of 21.3x, even after a roughly 12% post-earnings selloff that has pushed RSI to 33.2 and the price below both the 50-day ($112.0) and 200-day ($118.6) moving averages. Smart money turned net negative as of the quarter ended 2026-06-30 (score -0.26, down from +0.40 in Q1), and insiders have sold a net 78.8M shares over 24 months with no cluster buying, suggesting the fundamental quality is real but the risk/reward at this multiple does not justify adding until either the multiple compresses further or technical and ownership signals stabilize.

What could go wrong

  • Persistent valuation premium. At 37.2x earnings — 74.7% above the peer median of 21.3x and EV/EBITDA of 20.6x vs. peer median 12.7x — the stock remains priced for sustained double-digit EPS growth even after the selloff.
  • Deteriorating smart-money positioning. Smart money score dropped from +0.40 (Q1 2026) to -0.26 (Q2 2026) as of 2026-06-30, indicating institutional sentiment has turned net negative.
  • Relentless insider selling. Over 24 months insiders sold a net 78.8M shares worth $5.36B, with 269 dispositions versus 97 acquisitions and no cluster buying; recent August 2026 transactions were all sales.
  • Technical breakdown. Last close of $103.09 sits ~13% below the 50-day MA ($112.0) and ~13% below the 200-day MA ($118.6), with a negative MACD histogram (-0.99), signaling the downtrend is intact despite oversold RSI.

What would change my mind

Technical stabilization. RSI rebounds above 40 and price reclaims the 50-day MA near $112 on recovering volumebullish
Multiple compression. P/E contracts toward the low-30s or peer-median territory without a deterioration in earnings qualitybullish
Continued smart-money outflows. Q3 2026 13F composite shows further reduction in institutional positioning below the current -0.26 scorebearish
Earnings or guidance disappointment. Next quarterly report shows revenue growth decelerating below 4% or operating margin compression from the current 4.18% levelbearish

Where this comes from: FMP fundamentals FY2026 + derived_metrics FY2026 · peer_relative as of 2026-08-28 · smart_money points · insider summary. Orin's read on WMT; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$32.4B0.7% of fund
State Street$21.3B0.6% of fund
Invesco$16.8B1.3% of fund
Geode Capital Management$12.0B0.6% of fund
Jpmorgan Chase &$11.0B0.6% of fund
Vanguard Portfolio Management$10.7B0.5% of fund

195 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 375 Form 4 filings, net −$5.4B. Of the 50 on hand, 0 were open-market purchases and 17 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Consumer Defensive
MetricNowOwn medianSector
P/E39.9×33.6×38.3×
EV/EBITDA22.0×14.7×
P/S1.20×0.69×
P/B8.9×5.3×

Its P/E sits 60th percentile of its own last 5 years (+0.81σ from its own mean).

What the price assumes

22.5%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $14.9B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

66 firms · 2026-09-23
Consensus target

$129

$110$155 · +17% against today's price

How they rate it
  • 47 buy or overweight
  • 16 hold
  • 3 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 21.8× of 7 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
WMTWalmart Inc.$880B39.9×22.0×25.2%3.0%23%
COSTCostco Wholesale Corporation$401B45.4×27.0×12.9%3.0%28%
DGDollar General Corporation$27B15.6×12.5×31.2%3.9%20%
DLTRDollar Tree, Inc.$22B13.8×9.8×38.7%8.0%46%
KOThe Coca-Cola Company$379B26.5×20.7×61.9%28.6%43%
KRThe Kroger Co.$35B30.8×10.8×23.1%0.7%17%
PGThe Procter & Gamble Company$351B21.8×17.7×50.2%18.4%30%
TGTTarget Corporation$71B16.1×9.9×29.3%4.1%27%

The median is of the 7 peers listed above and nothing else — check it against the column. This company trades 82.7% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY15 16.8×FY26 43.5×

What its sector has traded at

Consumer Defensive
FY14 22.9×FY26 39.1×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$148$119.58 · +24%2026-06-10
Levered DCF$209$119.58 · +75%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $110.53
52-week range$99 – $135
Analyst targets$110 – $155
Standard DCF$148 as of 2026-06-10, when it was $119.58
Levered DCF$209 as of 2026-06-10, when it was $119.58
At own 5y-median P/E (34×)$93
At 5y P/E range (29–43×)$79 – $120
At sector P/E (38×)$106

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.