In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Free cash flow to the firm (FCFF) is generally described as cash flows after direct costs and before any payments to capital suppliers.

Intrinsic Stock Value (Valuation Summary)
Weighted Average Cost of Capital (WACC)
FCFF Growth Rate (g)

Walmart Inc., free cash flow to the firm (FCFF) forecast

US$ in millions, except per share data

Year	Value	FCFF_t or Terminal value (TV_t)	Calculation	Present value at 11.26%
0¹	FCFF₀	17,141
1	FCFF₁	18,328	= 17,141 × (1 + 6.93%)	16,472
2	FCFF₂	19,703	= 18,328 × (1 + 7.50%)	15,916
3	FCFF₃	21,295	= 19,703 × (1 + 8.08%)	15,461
4	FCFF₄	23,138	= 21,295 × (1 + 8.66%)	15,099
5	FCFF₅	25,275	= 23,138 × (1 + 9.23%)	14,824
5	Terminal value (TV₅)	1,362,217	= 25,275 × (1 + 9.23%) ÷ (11.26% – 9.23%)	798,945
Intrinsic value of Walmart Inc. capital				876,718
Less: Debt and finance lease obligations (fair value)				50,134
Intrinsic value of Walmart Inc. common stock				826,584

Intrinsic value of Walmart Inc. common stock (per share)				$104.19
Current share price				$110.12

Based on: 10-K (reporting date: 2026-01-31).

¹ See details »

Disclaimer!
Valuation is based on standard assumptions. There may exist specific factors relevant to stock value and omitted here. In such a case, the real stock value may differ significantly form the estimated. If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk.

Walmart Inc., cost of capital

	Value¹	Weight	Required rate of return²	Calculation
Equity (fair value)	873,664	0.95	11.73%
Debt and finance lease obligations (fair value)	50,134	0.05	3.19%	= 4.40% × (1 – 27.60%)

Based on: 10-K (reporting date: 2026-01-31).

¹ US$ in millions

Equity (fair value) = No. shares of common stock outstanding × Current share price
= 7,933,746,241 × $110.12
= $873,664,136,058.92

Debt and finance lease obligations (fair value). See details »

² Required rate of return on equity is estimated by using CAPM. See details »

Required rate of return on debt. See details »

Required rate of return on debt is after tax.

Estimated (average) effective income tax rate
= (24.40% + 23.40% + 25.50% + 33.60% + 25.40% + 33.30%) ÷ 6
= 27.60%

WACC = 11.26%

FCFF growth rate (g) implied by PRAT model

Walmart Inc., PRAT model

	Average	Jan 31, 2026	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Selected Financial Data (US$ in millions)
Interest expense, debt and finance lease		2,799)	2,728)	2,683)	2,128)	1,994)	2,315)
Consolidated net income attributable to Walmart		21,893)	19,436)	15,511)	11,680)	13,673)	13,510)

Effective income tax rate (EITR)¹		24.40%	23.40%	25.50%	33.60%	25.40%	33.30%

Interest expense, debt and finance lease, after tax²		2,116)	2,090)	1,999)	1,413)	1,488)	1,544)
Add: Cash dividends declared		7,507)	6,688)	6,140)	6,114)	6,152)	6,116)
Interest expense (after tax) and dividends		9,623)	8,778)	8,139)	7,527)	7,640)	7,660)

EBIT(1 – EITR)³		24,009)	21,526)	17,510)	13,093)	15,161)	15,054)

Short-term borrowings		6,596)	3,068)	878)	372)	410)	224)
Long-term debt due within one year		3,542)	2,598)	3,447)	4,191)	2,803)	3,115)
Finance lease obligations due within one year		856)	800)	725)	567)	511)	491)
Long-term debt, excluding due within one year		34,624)	33,401)	36,132)	34,649)	34,864)	41,194)
Long-term finance lease obligations, excluding due within one year		5,905)	5,923)	5,709)	4,843)	4,243)	3,847)
Total Walmart shareholders’ equity		99,617)	91,013)	83,861)	76,693)	83,253)	80,925)
Total capital		151,140)	136,803)	130,752)	121,315)	126,084)	129,796)
Financial Ratios
Retention rate (RR)⁴		0.60	0.59	0.54	0.43	0.50	0.49
Return on invested capital (ROIC)⁵		15.89%	15.73%	13.39%	10.79%	12.02%	11.60%
Averages
RR	0.52
ROIC	13.24%

FCFF growth rate (g)⁶	6.93%

Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).

¹ See details »

2026 Calculations

² Interest expense, debt and finance lease, after tax = Interest expense, debt and finance lease × (1 – EITR)
= 2,799 × (1 – 24.40%)
= 2,116

³ EBIT(1 – EITR) = Consolidated net income attributable to Walmart + Interest expense, debt and finance lease, after tax
= 21,893 + 2,116
= 24,009

⁴ RR = [EBIT(1 – EITR) – Interest expense (after tax) and dividends] ÷ EBIT(1 – EITR)
= [24,009 – 9,623] ÷ 24,009
= 0.60

⁵ ROIC = 100 × EBIT(1 – EITR) ÷ Total capital
= 100 × 24,009 ÷ 151,140
= 15.89%

⁶ g = RR × ROIC
= 0.52 × 13.24%
= 6.93%

FCFF growth rate (g) implied by single-stage model

g = 100 × (Total capital, fair value₀ × WACC – FCFF₀) ÷ (Total capital, fair value₀ + FCFF₀)
= 100 × (923,798 × 11.26% – 17,141) ÷ (923,798 + 17,141)
= 9.23%

where:

Total capital, fair value₀ = current fair value of Walmart Inc. debt and equity (US$ in millions)
FCFF₀ = the last year Walmart Inc. free cash flow to the firm (US$ in millions)
WACC = weighted average cost of Walmart Inc. capital

FCFF growth rate (g) forecast

Walmart Inc., H-model

Year	Value	g_t
1	g₁	6.93%
2	g₂	7.50%
3	g₃	8.08%
4	g₄	8.66%
5 and thereafter	g₅	9.23%

where:
g₁ is implied by PRAT model
g₅ is implied by single-stage model
g₂, g₃ and g₄ are calculated using linear interpolation between g₁ and g₅

Calculations

g₂ = g₁ + (g₅ – g₁) × (2 – 1) ÷ (5 – 1)
= 6.93% + (9.23% – 6.93%) × (2 – 1) ÷ (5 – 1)
= 7.50%

g₃ = g₁ + (g₅ – g₁) × (3 – 1) ÷ (5 – 1)
= 6.93% + (9.23% – 6.93%) × (3 – 1) ÷ (5 – 1)
= 8.08%

g₄ = g₁ + (g₅ – g₁) × (4 – 1) ÷ (5 – 1)
= 6.93% + (9.23% – 6.93%) × (4 – 1) ÷ (5 – 1)
= 8.66%

Walmart Inc. (NASDAQ:WMT)

Present Value of Free Cash Flow to the Firm (FCFF)

Intrinsic Stock Value (Valuation Summary)

Weighted Average Cost of Capital (WACC)

FCFF Growth Rate (g)

FCFF growth rate (g) implied by PRAT model

FCFF growth rate (g) implied by single-stage model

FCFF growth rate (g) forecast