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Walmart Inc  (NYSE:WMT) Median PS Value: $84.54 (As of Today)

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median P/S Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median P/S ratio. Walmart Inc's Revenue per Share for the trailing twelve months (TTM) ended in Apr. 2018 was $169.072. Walmart Inc's 10-Year median P/S ratio is 0.50. Therefore, the Median P/S Value for today is $84.54.

As of today, Walmart Inc's share price is $83.64. Walmart Inc's median P/S value is $84.54. Therefore, Walmart Inc's Price to Median P/S Value Ratio for today is 0.00.

During the past 13 years, the highest Price to Median P/S Value Ratio of Walmart Inc was 3.28. The lowest was 0.76. And the median was 1.35.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Walmart Inc Annual Data

Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18
Median PS Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 72.56 74.88 74.97 78.09 83.15

Walmart Inc Quarterly Data

Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18
Median PS Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 79.01 80.05 81.55 83.15 0.00

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Walmart Inc Distribution

* The bar in red indicates where Walmart Inc's Median PS Value falls into.



Calculation

Walmart Inc's Median P/S Value for today is calculated as

Median P/S Value=Total Annual Sales / Shares Outstanding*10-Year Median P/S Ratio
=Revenue per Share (TTM)*10-Year Median P/S Ratio
=169.072*0.50
=84.54

10-Year Median P/S Ratio is 0.50.
Walmart Inc's Revenue per Share for the trailing twelve months (TTM) ended in Apr. 2018 was 40.833 (Jul. 2017 ) + 41.114 (Oct. 2017 ) + 45.773 (Jan. 2018 ) + 41.352 (Apr. 2018 ) = $169.072.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.

Walmart Inc's Price to Median P/S Value Ratio for today is calculated as

Price to Median P/S Value=Share Price/Median P/S Value
=83.64/84.54
=0.99

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms


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