Stock Analysis on Net
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, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Consolidated net income attributable to Walmart 13,673  13,510  14,881  6,670  9,862  13,643 
Consolidated net income attributable to noncontrolling interest 267  196  320  509  661  650 
Net noncash charges 16,838  14,396  10,381  20,279  14,571  11,047 
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions (6,597) 7,972  (327) 295  3,243  6,190 
Net cash provided by operating activities 24,181  36,074  25,255  27,753  28,337  31,530 
Interest paid, net of tax1 1,669  1,478  1,863  1,538  1,661  1,639 
Payments for property and equipment (13,106) (10,264) (10,705) (10,344) (10,051) (10,619)
Proceeds from the disposal of property and equipment 394  215  321  519  378  456 
Free cash flow to the firm (FCFF) 13,138  27,503  16,734  19,466  20,325  23,006 

Based on: 10-K (reporting date: 2022-01-31), 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).

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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 increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Interest Paid, Net of Tax

Walmart Inc., interest paid, net of tax calculation

US$ in millions

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12 months ended: Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Effective Income Tax Rate (EITR)
EITR1 25.40% 33.30% 24.40% 34.50% 32.20% 30.30%
Interest Paid, Net of Tax
Interest paid, before tax 2,237  2,216  2,464  2,348  2,450  2,351 
Less: Interest paid, tax2 568  738  601  810  789  712 
Interest paid, net of tax 1,669  1,478  1,863  1,538  1,661  1,639 

Based on: 10-K (reporting date: 2022-01-31), 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).

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2 2022 Calculation
Interest paid, tax = Interest paid × EITR
= 2,237 × 25.40% = 568

Enterprise Value to FCFF Ratio, Current

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

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 372,856 
Free cash flow to the firm (FCFF) 13,138 
Valuation Ratio
EV/FCFF 28.38
Benchmarks
EV/FCFF, Competitors1
Costco Wholesale Corp. 38.67
EV/FCFF, Sector
Food & Staples Retailing 17.74
EV/FCFF, Industry
Consumer Staples 20.55

Based on: 10-K (reporting date: 2022-01-31).

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

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Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 436,928  408,857  374,682  336,181  305,207  260,427 
Free cash flow to the firm (FCFF)2 13,138  27,503  16,734  19,466  20,325  23,006 
Valuation Ratio
EV/FCFF3 33.26 14.87 22.39 17.27 15.02 11.32
Benchmarks
EV/FCFF, Competitors4
Costco Wholesale Corp. — 35.64 25.32 37.24 32.89 16.33
EV/FCFF, Sector
Food & Staples Retailing — 18.30 23.18 20.26 17.21 12.11
EV/FCFF, Industry
Consumer Staples — 20.93 22.29 22.44 19.71 20.73

Based on: 10-K (reporting date: 2022-01-31), 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).

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3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 436,928 ÷ 13,138 = 33.26

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 decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.