Someone fucking explain why Walmart ($WMT) is at 47x earnings?
u/ini0n ·
Reddit — r/wallstreetbets
· March 04, 2026 at 23:25
· ⬆ 309 pts
· 💬 225 comments
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Summary
The post questions Walmart's ($WMT) high Price-to-Earnings (P/E) ratio of 47x, arguing it's unjustified given its slowing growth in revenue and EBITDA.
The author's thesis is that WMT is overvalued, comparing it unfavorably to other defensive stocks like Coca-Cola and its competitor Costco, and believes the market is incorrectly pricing it like a high-growth tech company.
This is speculative analysis based on readily available financial data, but lacks deep fundamental research into the drivers of Walmart's valuation (e.g., Walmart+, ad business growth, future guidance).
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The stock has nearly tripled in three years.
https://preview.redd.it/xvtibjk234ng1.jpg?width=837&format=pjpg&auto=webp&s=b444b8ae85202cb33f1b5d0717b93b11e277a4ad
[](https://preview.redd.it/someone-fucking-explain-why-walmart-wmt-is-at-47x-earnings-v0-ued8mmelv3ng1.png?width=837&format=png&auto=webp&s=2d2337dffffdcd5214911dad44b1abfec51f1d38)
Low EBITDA growth post 2023, there's been some one-off gains from investments for the GAAP earnings. Growth slowing to 3.35% in most recent quarter, nothing exceptional.
[EBITDA](https://preview.redd.it/joz1exu434ng1.jpg?width=867&format=pjpg&auto=webp&s=ce1b9619008507671ed9e08c26df49f9bb35dd9f)
[](https://preview.redd.it/someone-fucking-explain-why-walmart-wmt-is-at-47x-earnings-v0-4w051m9zv3ng1.png?width=867&format=png&auto=webp&s=5f3e992de7b92e8f87e510c421b7ee99f67225de)
Revenue growth ok at around 5-6%, also should factor higher inflation in recent years, nothing insane.
[](https://preview.redd.it/someone-fucking-explain-why-walmart-wmt-is-at-47x-earnings-v0-062gym2vv3ng1.png?width=856&format=png&auto=webp&s=eb624e4bee2f934096dfc3f7aa606012607a74fa)
[Revenue](https://preview.redd.it/jl5ynq9c34ng1.jpg?width=856&format=pjpg&auto=webp&s=f1921a0d560b1b8a3883411eff2fa8518ff6c855)
Apparently, it's a tech company because it has a website now. Is the year 1999?? It has generated solid margin from selling ads on its website but traffic seems flat though so guessing growth will slow.
[](https://preview.redd.it/someone-fucking-explain-why-walmart-wmt-is-at-47x-earnings-v0-4kuaqpdfy3ng1.png?width=1038&format=png&auto=webp&s=cde25fce94e7edaae4ac93f08fcedd160db27f8a)
[Traffic](https://preview.redd.it/bw201emj34ng1.jpg?width=1038&format=pjpg&auto=webp&s=f824b82ea1e3cfda789d38252e7fe33799fda95d)
If you compare it to other defensive stocks like Coke which have similar growth, better brand, international growth potential and a 25x PE - unsure why Walmart is so rich. I mean it's Walmart. I'd much rather own Costco then Walmart.
Tell me why I shouldn't put my life savings into Walmart puts? Bought some puts already but thinking of going bigger:
https://preview.redd.it/nkpl60px34ng1.png?width=1085&format=png&auto=webp&s=bf17568022a1423456f8cc815c0e6ed6f53c3f3b