Understanding Walmart Enterprise Value and Its Implications

Walmart's enterprise value is a staggering $542 billion. This massive number gives you an idea of the company's financial worth, including its market capitalization, debt, and other liabilities.

The enterprise value-to-EBITDA ratio is a key metric that investors and analysts use to evaluate Walmart's financial health. This ratio is calculated by dividing the enterprise value by the company's earnings before interest, taxes, depreciation, and amortization (EBITDA).

Walmart's enterprise value has been steadily increasing over the years, reaching a high of $542 billion in 2022. This growth is attributed to the company's strong financial performance and strategic investments in e-commerce and digital transformation.

As a result, Walmart's enterprise value has become a benchmark for the retail industry, with many companies striving to match its financial performance.

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Walmart Inc.'s Enterprise Value (EV) has fluctuated significantly over the years, with the highest annual Enterprise Value reaching $496.34 billion in 2024, a 45.88% increase from the previous year.

The company's EV has been on an upward trend since 2018, when it was at its lowest point of $246.06 billion. This indicates a significant improvement in Walmart's financial performance and market dynamics.

The mean historical Enterprise Value of Walmart Inc. over the last ten years is $370.97 billion, with the current Enterprise Value of $887.49 billion being 23.82% higher than the historical average.

Here's a breakdown of Walmart's Enterprise Value by year:

Walmart's Enterprise Value has been increasing steadily over the years, with the exception of a slight decrease in 2022. This trend suggests that the company's financial performance and market dynamics are improving.

Walmart's current Enterprise Value of $887.49 billion is greater than its 3-year, 5-year, and 10-year historical averages, indicating a strong financial position for the company.

In the past ten years, Walmart's Enterprise Value was at its highest in the October 2024 quarter at $710.41 billion, and at its lowest in the October 2015 quarter at $229.21 billion.

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Walmart Inc. valuation is a complex topic, but let's break it down in simple terms. The company's Enterprise Value (EV) is a key metric used to determine its overall value.

According to the data, Walmart Inc.'s EV has fluctuated over the years, with the maximum annual increase being 45.88% in 2018, and the minimum annual decrease being -18.36% in 2016.

Here's a snapshot of Walmart Inc.'s EV over the years:

As you can see, the company's EV has been on an upward trend, with a significant increase in 2024.

Another important metric is the EV/FCFF (Enterprise Value to Free Cash Flow to the Firm) ratio, which is a valuation indicator. In 2024, Walmart Inc.'s EV/FCFF ratio was 30.87, which is lower than its 2022 level of 33.26. This indicates that the company's valuation has decreased relative to its free cash flow.

Here's a comparison of Walmart Inc.'s EV/FCFF ratio with its competitors and industry benchmarks:

Walmart Inc.'s EV/FCFF ratio is lower than its competitors and industry benchmarks, which may indicate a more attractive valuation.

Walmart's Enterprise Value (EV) is a crucial metric that represents the total value of the company. It's calculated by subtracting the value of cash and short-term investments from the total company value, which includes the market value of common equity, debt, and preferred equity.

The mean historical Enterprise Value of Walmart Inc. over the last ten years is $370.97B, with the current EV being $887.49B, a 23.82% change from the historical average. Walmart's EV was at its highest in the October 2024 quarter at $710.41B and at its lowest in the October 2015 quarter at $229.21B.

Here are some key facts about Walmart's EV:

As you can see, Walmart's EV has fluctuated over the years, with a significant increase in 2024.

Enterprise value (EV) is a measure of a company's total value, calculated by adding up the market value of its common equity, debt, and preferred equity, and then subtracting the value of its cash and short-term investments.

The formula for EV is: EV = Total equity and debt - Cash and cash equivalents.

Let's take a look at an example from Walmart Inc.'s historical data. As of January 31, 2024, Walmart's EV was $532,474 million.

Here's a breakdown of the components that make up Walmart's EV:

As you can see, Walmart's EV has fluctuated over the years, but it's always been a key indicator of the company's overall value.

The FCFF ratio is a key indicator of a company's valuation. It measures the enterprise value of a company compared to its free cash flow to the firm.

Walmart Inc.'s historical FCFF ratio shows a decrease from 2022 to 2023 and from 2023 to 2024. This decrease suggests that the company's valuation has become more attractive.

In 2024, the company's EV/FCFF ratio was 30.87, which is lower than its competitors' ratios. For example, Costco Wholesale Corp.'s EV/FCFF ratio was 61.14, while Target Corp.'s ratio was 21.20.

Here's a breakdown of Walmart Inc.'s historical EV/FCFF ratios:

The historical EV/FCFF ratios of Walmart Inc. suggest that the company's valuation has become more attractive over time.

Multiples are a crucial aspect of evaluating Walmart's enterprise value. The forward EV/EBIT multiple uses forecasted EBIT for the EV/EBIT calculation.

This version of the EV/EBIT ratio gives investors a better idea of a company's future performance. It's calculated using EBIT forecasts for 1, 2, and 3 years ahead, which are referred to as 1-Year, 2-Years, and 3-Years forwards.

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Walmart Inc.'s Enterprise Value is greater than Costco Wholesale Corporation's, at $472.92 billion compared to Costco's $475.79 billion market cap.

Let's take a look at how Walmart's Enterprise Value stacks up against its peers.

Here's a comparison of the Enterprise Value of Walmart Inc. with some of its competitors:

Walmart's Enterprise Value is less than Dollar General Corporation's, but that's because Dollar General Corporation's Enterprise Value is listed as $0.

FCFF is a measure of a company's cash flow available to its suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. It's calculated by taking the company's consolidated net income, adding back non-cash charges and changes in certain assets and liabilities, and then subtracting interest paid and payments for property and equipment.

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Walmart Inc.'s FCFF increased from 2022 to 2023 and from 2023 to 2024, as shown in the table below.

FCFF is an important metric because it shows a company's ability to generate cash flow, which can be used to pay dividends, invest in new projects, or reduce debt. Walmart Inc.'s FCFF has been steadily increasing over the past few years, indicating that the company is generating more cash flow and has a stronger financial position.

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The EV/EBIT Forward Multiples is a useful tool for investors and analysts. It's a version of the EV/EBIT ratio that uses forecasted EBIT for the calculation.

Forward EV/EBIT multiple is a version of the EV/EBIT ratio that uses forecasted EBIT for the EV/EBIT calculation. This is done to get a more accurate picture of a company's valuation.

1-Year, 2-Years, and 3-Years forwards use EBIT forecasts for 1, 2, and 3 years ahead, respectively.

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