“Walmart (WMT): From Discount Retailer to eCommerce Powerhouse”
Walmart is a high-quality business but overvalued at ~38x trailing PE; intrinsic value estimated at $50-$78, so not a buy at current price.
Walmart isn't your standard bricks and mortar retailer anymore. It's a business that now has an advertising platform, a membership business, a marketplace, and delivery, all layered on top of one of the largest retail operations in the entire world.
And all of that is built on a business with really strong capital efficiency, smart capital allocation, and an aligned incentive structure with management. And so it's just hard to find all of those traits in a single business anywhere, let alone in retail.