Walmart: A Great Company With A Fair Price, But Look For Value Under $40


  • Walmart’s ability to maintain profit margins amid inflationary pressures makes it a reliable investment to protect purchasing power in an inflationary environment.
  • Walmart plans to build or remodel over 150 stores in the next five years, enhancing customer experience and expanding its physical footprint while integrating advanced technologies.
  • While Walmart’s current share price of around $60 reflects its strong market position, a more conservative valuation approach suggests an attractive buying opportunity under $40.

Prince Frederick, Maryland USA

Alexander Farnsworth

Walmart Inc. (NYSE:WMT) is a powerhouse in the retail industry, recognized for its strong presence both in physical stores and online. In my view, the company’s robust financial performance and resilience in challenging economic conditions are well-documented. The current share

Year Projected FCF (in $ billions) Discount Factor (8.21%) Present Value (in $ billions)
2025 18.5 0.924 17.09
2026 19.3 0.854 16.48
2027 20.1 0.789 15.87
2028 21.0 0.729 15.31
2029 21.9 0.674 14.76
Terminal Value (2030) 348.9 0.674 235.16
Total Enterprise Value 314.67

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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