Walmart (WMT) stock trades at $166.03, with a market capitalization of approximately $447.1 billion and an enterprise value of approximately $498 billion. A closer look at the financial metrics reveals earnings per share (EPS) of $5.2138 and strong cash flow, with operating cash flow per share of $14.1336 and free cash flow of $7.2339. Walmart's current ratio is 0.8267, which maintains liquidity even though it indicates tighter working capital management.
Its asset base is supported by a solid book value of $29.5417 per share and a tangible book value of $21.274 per share. Meanwhile, shareholders' equity is $29.5417 per share, interest-bearing debt is $24.991 per share, and the debt-to-equity ratio is 0.8145, indicating significant leverage.
Walmart's valuation multiples, such as a price-to-earnings ratio of 31.8591, a price-to-sales (P/S) ratio of 0.7087, and a price-to-book (P/B) ratio of 5.6228, indicate that the company is relatively valued. Current Market. Additionally, enterprise value multiples such as EV/Sales 0.7894 and EV/EBITDA 14.3509 indicate the market's expectations for future growth and profitability.
The company has a modest dividend yield of 1.3665% and a sustainable payout ratio of 0.4347, indicating a cautious approach to returning income to shareholders. Additionally, an earnings quality ratio of 2.7204 indicates solid profitability.
Technically, Walmart appears to be at the peak of the fifth wave of the Elliott Wave pattern, with the RSI indicator on the 4-hour chart approaching overbought territory. This indicates that a correction phase may be coming. Therefore, it may be prudent to hold off on buying the stock for now. Investors interested in Walmart should watch for a pullback to support around $151, which could signal the start of the next bullish wave and where it may be advantageous to establish a position.
All in all, Walmart stock demonstrates strong financials, and its premium valuation multiple suggests market optimism. However, with technical indicators pointing to a potential near-term correction, the strategic approach will include waiting for a more favorable entry point while focusing on the longer-term fundamentals that support the company's health.
Its asset base is supported by a solid book value of $29.5417 per share and a tangible book value of $21.274 per share. Meanwhile, shareholders' equity is $29.5417 per share, interest-bearing debt is $24.991 per share, and the debt-to-equity ratio is 0.8145, indicating significant leverage.
Walmart's valuation multiples, such as a price-to-earnings ratio of 31.8591, a price-to-sales (P/S) ratio of 0.7087, and a price-to-book (P/B) ratio of 5.6228, indicate that the company is relatively valued. Current Market. Additionally, enterprise value multiples such as EV/Sales 0.7894 and EV/EBITDA 14.3509 indicate the market's expectations for future growth and profitability.
The company has a modest dividend yield of 1.3665% and a sustainable payout ratio of 0.4347, indicating a cautious approach to returning income to shareholders. Additionally, an earnings quality ratio of 2.7204 indicates solid profitability.
Technically, Walmart appears to be at the peak of the fifth wave of the Elliott Wave pattern, with the RSI indicator on the 4-hour chart approaching overbought territory. This indicates that a correction phase may be coming. Therefore, it may be prudent to hold off on buying the stock for now. Investors interested in Walmart should watch for a pullback to support around $151, which could signal the start of the next bullish wave and where it may be advantageous to establish a position.
All in all, Walmart stock demonstrates strong financials, and its premium valuation multiple suggests market optimism. However, with technical indicators pointing to a potential near-term correction, the strategic approach will include waiting for a more favorable entry point while focusing on the longer-term fundamentals that support the company's health.
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