As of December 2024 (TTM), Walmart Inc. (WMT) has a Price-to-Earnings (PE) ratio of 38.12.
Understanding Walmart's PE Ratio
The Price-to-Earnings (PE) ratio is a widely used valuation metric that helps investors determine the value of a company. It indicates how much investors are willing to pay for every dollar of a company's earnings. A higher PE ratio often suggests that investors anticipate higher growth in the future or that the stock is considered a stable, high-quality asset.
For Walmart, a PE ratio of 38.12 (TTM, trailing twelve months) means that, based on its earnings over the past year, investors are willing to pay $38.12 for every $1 of earnings. This figure is a snapshot as of December 2024 and is influenced by both the company's current stock price and its latest reported earnings.
Key Valuation Metric
Below is a summary of Walmart's recent PE ratio:
| Metric | Value |
|---|---|
| Company | Walmart Inc. (WMT) |
| PE Ratio (TTM) | 38.12 |
| As of | December 2024 |
Understanding this ratio involves more than just the number itself. Investors typically compare a company's PE ratio to:
- Its historical PE ratios.
- The PE ratios of competitors in the retail sector.
- The average PE ratio of the broader market.
Such comparisons provide context, helping to assess whether the stock might be undervalued or overvalued relative to its peers or its own past performance. For instance, a higher PE in the retail sector, especially for a mature company like Walmart, could suggest strong market confidence in its long-term strategy, including e-commerce growth and diversification efforts.
Where to Find Current Financial Data
For up-to-date financial metrics and detailed reports on companies like Walmart, investors often consult reliable financial data platforms. These platforms provide comprehensive insights into a company's stock performance, earnings, and other key financial ratios, which are essential for informed investment decisions.
