Stock Analysis on Net

Walmart Inc. (NYSE:WMT)

Enterprise Value to FCFF (EV/FCFF)

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Free Cash Flow to The Firm (FCFF)

Walmart Inc., FCFF calculation

US$ in millions

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12 months ended: Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
Consolidated net income attributable to Walmart 13,510  14,881  6,670  9,862  13,643  14,694 
Consolidated net income attributable to noncontrolling interest 196  320  509  661  650  386 
Net noncash charges 14,396  10,381  20,279  14,571  11,047  10,192 
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions 7,972  (327) 295  3,243  6,190  2,117 
Net cash provided by operating activities 36,074  25,255  27,753  28,337  31,530  27,389 
Interest paid, net of tax1 1,478  1,863  1,538  1,661  1,639  1,770 
Payments for property and equipment (10,264) (10,705) (10,344) (10,051) (10,619) (11,477)
Proceeds from the disposal of property and equipment 215  321  519  378  456  635 
Free cash flow to the firm (FCFF) 27,503  16,734  19,466  20,325  23,006  18,317 

Based on: 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31), 10-K (reporting date: 2016-01-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Walmart Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Walmart Inc. FCFF decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Interest Paid, Net of Tax

Walmart Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
Effective Income Tax Rate (EITR)
EITR1 33.30% 24.40% 34.50% 32.20% 30.30% 30.30%
Interest Paid, Net of Tax
Interest paid, before tax 2,216  2,464  2,348  2,450  2,351  2,540 
Less: Interest paid, tax2 738  601  810  789  712  770 
Interest paid, net of tax 1,478  1,863  1,538  1,661  1,639  1,770 

Based on: 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31), 10-K (reporting date: 2016-01-31).

1 See details »

2 2021 Calculation
Interest paid, tax = Interest paid × EITR
= 2,216 × 33.30% = 738


Enterprise Value to FCFF Ratio, Current

Walmart Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 440,115 
Free cash flow to the firm (FCFF) 27,503 
Valuation Ratio
EV/FCFF 16.00
Benchmarks
EV/FCFF, Competitors1
Costco Wholesale Corp. 40.11
EV/FCFF, Sector
Food & Staples Retailing 29.40
EV/FCFF, Industry
Consumer Staples 27.63

Based on: 10-K (reporting date: 2021-01-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Walmart Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 408,857  374,682  336,181  305,207  260,427  260,724 
Free cash flow to the firm (FCFF)2 27,503  16,734  19,466  20,325  23,006  18,317 
Valuation Ratio
EV/FCFF3 14.87 22.39 17.27 15.02 11.32 14.23
Benchmarks
EV/FCFF, Competitors4
Costco Wholesale Corp. 35.64 25.32 37.24 32.89 16.33 92.33
EV/FCFF, Sector
Food & Staples Retailing 23.18 20.26 17.21 12.11 17.21
EV/FCFF, Industry
Consumer Staples 22.76 22.90 19.98 21.10 22.70

Based on: 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31), 10-K (reporting date: 2016-01-31).

1 See details »

2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 408,857 ÷ 27,503 = 14.87

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Walmart Inc. EV/FCFF ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.