On August 20, 2026, Walmart Inc WMT shares experienced a significant decline of 9.2%, bringing the current price to $103.84. Over the past 52 weeks, the stock has fluctuated between a high of $135.16 and a low of $95.42.
- GF Value™ verdict: Current price is $103.84, representing a 9.6% overvaluation compared to GF Value™ of $94.74.
- GF Score™ is 85/100, indicating a strong overall performance.
- Notable signal: Insiders sold $3,594.0M in shares over the past 12 months, with no buying activity.
Is WMT Overvalued or Undervalued?
The GF Value™ estimate for Walmart Inc WMT stands at $94.74, indicating that the current price of $103.84 is approximately 9.6% overvalued. This assessment suggests a potential risk for investors, as the stock's price exceeds what is deemed fair based on historical trading multiples and future performance projections. The GF Value™ represents GuruFocus' proprietary intrinsic-value estimate, which incorporates the company's historical performance and anticipated growth, providing a benchmark for assessing whether the stock is selling at an attractive price.
Given that Walmart Inc's stock is trading above the GF Value™, it signals that investors may be paying more than what the company is fundamentally worth at this time. This overvaluation raises caution for potential buyers and suggests that the current market price does not provide a sufficient margin of safety for investment.
How Does WMT's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 36.4x | 37.3x (5-Year Median) |
| Forward P/E | 35.0x | N/A |
Walmart's current P/E (TTM) of 36.4x is slightly below its 5-year median P/E of 37.3x, indicating that the stock is trading at a value that is marginally less than its historical average. This P/E analysis aligns with the GF Value™ verdict, suggesting that the current valuation does not offer a compelling argument for investment at this time, given the overvaluation indicated by the GF Value™ estimate.
What Does WMT's GF Score™ Tell Us?
The GF Score™ is a comprehensive measure that evaluates a company's performance across various dimensions, including financial strength, profitability, growth, valuation, and momentum. Walmart's GF Score™ of 85/100 reflects a strong overall performance, with notable strengths in financial stability and profitability.
| Metric | Rating |
|---|---|
| GF Score™ | 85 |
| Financial Strength | 7/10 |
| Profitability | 8/10 |
| Growth | 7/10 |
| Valuation | 6/10 |
| Momentum | 7/10 |
The strongest sub-rank for Walmart is its Profitability score of 8/10, indicating robust earnings relative to its peers. However, the Valuation rank of 6/10 suggests that while the company is performing well operationally, its current market valuation may not reflect the same strength. Overall, WMT's strong GF Score™ indicates solid fundamentals, yet the valuation concerns highlighted by the GF Value™ assessment call for careful consideration.
What Are Gurus and Insiders Doing with WMT?
Currently, 20 gurus hold shares of Walmart Inc, with 7 increasing their positions and 13 reducing their stakes in recent quarters. This mixed activity suggests a nuanced sentiment among investment professionals regarding the stock's future prospects. The notable insider activity indicates a more bearish outlook, as insiders sold $3,594.0M worth of shares over the past 12 months, with no buying recorded during the same period.
This significant selling by insiders may suggest a lack of confidence in the stock's short-term prospects, reinforcing the caution indicated by the GF Value™ assessment. The divergence between guru activity and insider selling adds a layer of complexity to the investment thesis, potentially signaling a reassessment of the stock's fair value among those closely linked to the company.
What This Means for Investors
In conclusion, Walmart Inc WMT is currently assessed as overvalued based on the GF Value™ of $94.74 compared to the current price of $103.84. The stock’s strong GF Score™ indicates solid operational performance; however, the concerning insider selling and mixed guru activity suggest investors should tread carefully. Further analysis and consideration of market conditions are essential before making any investment decisions regarding Walmart Inc. For additional insights, visit the Walmart Inc (WMT) stock page for further details.
Frequently Asked Questions
What is WMT's GF Score™?
WMT's GF Score™ is 85/100, indicating a strong overall performance across various metrics.
Is WMT overvalued or undervalued?
WMT is considered overvalued with a GF Value™ of $94.74 compared to the current price of $103.84.
What is WMT's P/E ratio?
WMT's P/E ratio is 36.4x, which is slightly below its 5-year median of 37.3x, indicating a marginally lower valuation compared to its historical average.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
