Walmart

Methodology

Walmart's mature retail business model produces steady, predictable earnings that align well with this valuation approach, as the world's largest retailer achieves modest but reliable growth through store expansions, e-commerce development, and market share gains. The method captures Walmart's position as a defensive retailer with consistent profitability, though it may undervalue the company's emerging digital capabilities and advertising business. Fair value estimates are most reliable when emphasizing free cash flow generation rather than expecting significant earnings growth acceleration.

Methodology

Walmart typically commands moderate PEG ratios reflecting the market's balance between appreciation for its defensive characteristics and recognition of limited growth potential in mature discount retail. The company's low-single-digit revenue growth means investors are paying for stability and dividend reliability rather than expansion potential. Comparing Walmart's PEG to other consumer staples retailers and historical ranges helps identify relative value, particularly when e-commerce or international growth initiatives show traction.

Methodology

Walmart's consistent dividend yield and regular increases make PEGY more relevant than PEG for capturing the total return proposition, as the retailer's commitment to returning capital through dividends appeals to income investors seeking defensive positions. The combination of stable low-single-digit growth and a meaningful dividend makes PEGY particularly useful for evaluating Walmart's mature, cash-generative business model. For income-focused investors, PEGY provides a more complete picture of shareholder value creation than growth-focused metrics alone.