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Walmart (NYSE:WMT) GF Value Rank

: 5 (As of Today)
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Walmart has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Discount Stores subindustry, Walmart's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


Walmart GF Value Rank Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Walmart's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Walmart's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.

Walmart GF Value Rank Related Terms

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Walmart (NYSE:WMT) Business Description

Walmart logo
702 S.W. 8th Street, Bentonville, AR, USA, 72716
Walmart serves as the preeminent retailer in the United States, with its strategy predicated on superior operating efficiency and offering the lowest priced goods to consumers to drive robust store traffic and product turnover. Walmart augmented its low-price business strategy by offering a convenient one-stop shopping destination with the opening of its first supercenter in 1988.Today, Walmart operates over 4,700 stores in the United States (5,300 including Sam's Club) and over 10,000 stores globally. Walmart generated over $420 billion in domestic namesake sales last year, with Sam's Club contributing another $84 billion to the firm's top line. Internationally, Walmart generated $100 billion in sales. The company serves around 240 million customers globally.
John D Rainey officer: Executive Vice President C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Randall L Stephenson director 208 S. AKARD ST., DALLAS TX 75202
Donna Morris officer: Executive Vice President 345 PARK AVENUE, SAN JOSE CA 95110
Kathryn J. Mclay officer: Executive Vice President 702 S.W. 8TH STREET, BENTONVILLE AR 72716
Suresh Kumar officer: Chief Technology Officer 860 W. CALIFORNIA AVE., SUNNYVALE CA 94086
Rachel L Brand officer: Executive Vice President 702 S.W. 8TH STREET, BENTONVILLE AR 72716
Judith J Mckenna officer: Executive Vice President 702 S.W. 8TH STREET, BENTONVILLE AR 72716
Carla A Harris director 702 SW 8TH STREET, BENTONVILLE AR 72716
John R. Furner officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
David Chojnowski officer: Senior Vice President 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Marc E. Lore officer: Executive Vice President 443 GREENWICH STREET, PHA, NEW YORK NY 10013
Steuart L Walton director 702 SW 8TH STREET, BENTONVILLE AR 72716