Walmart's management score of 92 reflects a business that earns 11.9% on invested capital while carrying only 0.7 times debt to equity, a combination that points to disciplined capital allocation and a conservative balance sheet. The moat score of 69 suggests a durable but not dominant competitive position, consistent with a 24.9% gross margin in a low-margin business.
The current price of $113.26 sits far above every valuation anchor here: $5.71 at a 50% margin of safety, and $26.32 to $26.37 under the 10-cap, payback, and consensus methods. That gap produces a margin of safety score of just 5. Those figures rest on a growth rate of 5.0%, which the model deliberately capped below what Walmart has actually achieved historically, a conservative choice rather than an aggressive one.
The tension is straightforward. The underlying business scores well on quality and balance sheet strength, but the market price of $113.26, at 39.7 times earnings and a 1.6% free cash flow yield, is asking for far more than the model's conservative history-based figures would support.
| Price | $106.73 |
| Market cap | $849.4B |
| P/E ratio | 38.5x |
| Return on invested capital | 11.9% |
| Gross margin | 24.9% |
| Debt to equity | 0.67x |
| Free cash flow yield | 1.6% |
| Growth rate used | 5.0% |
| Growth rate measured | 5.0% |
| Exit multiple assumed | 10.0x |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Walmart Inc. rather than accepting ours.