Added to YB: 2026-08-27
Pitch date: 2026-08-24
WMT [bearish]
Walmart Inc.
+1.17%
current return
Author Info
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Company Info
Walmart Inc. engages in the operation of retail and wholesale stores and clubs, ecommerce websites, and mobile applications worldwide.
Market Cap
$847.5B
Pitch Price
$105.58
Price Target
N/A
Dividend
0.93%
EV/EBITDA
18.07
P/E
38.59
EV/Sales
1.25
Sector
Consumer Staples Distribution and Retail
Category
value
Walmart Inc. - $WMT
WMT (short): Short thesis: WMT at 38x trailing = dot-com-era valuation (44.5x in May 2000) without the growth engine — comps just slowed to 2.6%, lowest in 6+yrs; EPS growth now ~6% vs 18% then. Author: worth ~$250B vs $825B mkt cap. Path: reverts to ~16x (S&P long-term median) over decade → ~8% annual multiple-compression drag = flat nominal returns to 2036; 2000-2010 precedent saw 44.5x→13.1x compression, 1.8%/yr return, negative real. Reinvests 64% of $41.6B OCF at ~9% after-tax; buybacks+div ~1% each. Risks to short: historically great compounder/consumer-defensive safe haven (GFC EPS +7.6%), so short interest only 1.7%, borrow 0.41%. Author: margins likelier to contract than expand.
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