Relative valuation refers to valuation of the firm on the basis of how similar firms are valued. it uses price multiples.Price multiples is any ratio with value as numerator and value driver as denomiator.
Value Driver | Price Multiple |
Earnings | P/E ratio |
You require relative valuation with peers for walmart with the industry average:
Industry average P/E ratio to which walmart belongs is 35.3 times
Company | PE ratio |
Walmart Inc | 54.5 |
Amazon.com Inc | 141.7 |
Alibaba group | 43.5 |
Pricesmart Inc | 30.9 |
Big Lots Inc | 11.1 |
PE ratio of walmart is high from several peers therefore it is performing well the industry and it is also high from average of industry PE ratio, it seems it is operatig well and under profit.
PE ratio of walmart is 26.8 for the year 2020 .
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