WalmartWMT -1.23%86 Return-on-Tangible-Equity is 31.11% as of Apr. 2026, which is 15% above its 10-year median of 27.02. GuruFocus rates WMT with a GF Score™ of 86/100 and a GF Value™ of $94.24 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 300 Retail - Defensive companies, Walmart ranks better than 82.33% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Walmart's annualized net income for the quarter that ended in Apr. 2026 was $21,320 Mil. Walmart's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $68,530 Mil. Therefore, Walmart's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 31.11%.
The historical rank and industry rank for Walmart's Return-on-Tangible-Equity or its related term are showing as below:
WMT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.22 Med: 27.02 Max: 35.48
Current: 35.48
During the past 13 years, Walmart's highest Return-on-Tangible-Equity was 35.48%. The lowest was 13.22%. And the median was 27.02%.
WMT's Return-on-Tangible-Equity is ranked better than 82.33% of 300
companies
in the Retail - Defensive industry
Industry Median: 10.975
vs WMT: 35.48
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Walmart Return-on-Tangible-Equity Related Terms
Walmart Return-on-Tangible-Equity Historical Data
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The historical data trend for Walmart's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
WMT vs COST, TGT, DG: Return-on-Tangible-Equity Comparison
For the Discount Stores subindustry, Walmart's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Walmart's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Walmart's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 31.11% mean?
Walmart (WMT) has a Return-on-Tangible-Equity of 31.11% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Walmart and its competitors. This is 15% above median its historical median of 27.02. Over the past decade, Walmart's Return-on-Tangible-Equity has ranged from 13.22 to 35.48. According to the industry distribution chart, Walmart ranks #53 out of 300 companies in the Retail - Defensive industry, placing it in the top 17.7%.
Is Walmart's Return-on-Tangible-Equity too high?
Walmart's current Return-on-Tangible-Equity of 31.11% is 15% above median its 10-year median of 27.02. Over the past 10 years, this metric has ranged from a low of 13.22 to a high of 35.48. The Retail - Defensive industry median Return-on-Tangible-Equity is 10.98. Walmart's value of 31.11% is 183.5% above this industry median. Based on the distribution chart, Walmart ranks #53 out of 300 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Walmart has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Walmart's Return-on-Tangible-Equity compare to COST and TGT?
According to the Retail - Defensive industry distribution chart, Walmart ranks #53 out of 300 companies for Return-on-Tangible-Equity. This places Walmart in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.98. Walmart's value of 31.11% is 183.5% above this benchmark. Historically, Walmart's own Return-on-Tangible-Equity has ranged from 13.22 to 35.48 over the past decade. While the company's 10-year median is 27.02 vs. the industry median of 10.98, Walmart has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Retail - Defensive company?
The median Return-on-Tangible-Equity among Retail - Defensive companies is 10.98, based on 300 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Walmart's current Return-on-Tangible-Equity of 31.11% is 183.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Walmart and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Equity is 10.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Walmart's current Return-on-Tangible-Equity is 31.11%, which is 15% above median its own 10-year median of 27.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Walmart stock overvalued right now?
Based on GuruFocus' analysis, Walmart (WMT) is currently considered Modestly Overvalued. The stock's GF Value™ is $94.24, compared to a current price of $110.46 — trading 17.2% above its estimated fair value. The current Return-on-Tangible-Equity is 31.11%, which is 15% above median its 10-year median of 27.02 and 183.5% above the Retail - Defensive industry median of 10.98. Walmart's overall GF Score™ is 86/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Walmart (WMT), the current Return-on-Tangible-Equity is 31.11% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Walmart (WMT) Overvalued in 2026?
Based on GuruFocus' analysis, Walmart stock appears to be overvalued.
The current stock price of $110.46 is trading 17.2% above its estimated GF Value™ of $94.24.
GuruFocus considers Walmart to be Modestly Overvalued.
Key valuation signals for WMT:
Return-on-Tangible-Equity: 31.11% (15% above median its 10-year median of 27.02)
GF Value™: $94.24 vs. price of $110.46 (17.2% above fair value)
Industry Position: 183.5% above the Retail - Defensive median (#53 of 300)
No single metric tells the full story. See the WMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Since its founding in 1962, Walmart has become the world's largest retailer, operating over 10,700 stores globally (including 4,600 namesake locations on its home turf and another 600 Sam's Club outlets) and growing its e-commerce presence, attracting 270 million customers weekly. In aggregate, the firm posted more than $713 billion in fiscal 2026 sales. Its core operations span three reporting segments: Walmart US (68% of fiscal 2026 sales), Walmart International (19%), and Sam's Club (13%).Within the US, nearly 60% of its $486 billion in fiscal 2026 revenue came from its grocery offerings, with another quarter from general merchandise. Internationally, Walmart's operations are concentrated in Mexico, though it also has budding exposure to India.
86GF Score
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