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Walmart Over Amazon: Retailer Wins EBITDA Multiple Foot Race
Yahoo Finance· 2026-02-10 22:26
Core Insights - Walmart Inc. has achieved a market capitalization exceeding $1 trillion, marking a significant milestone in the retail sector [1] - Currently, Walmart offers a better investment value compared to Amazon, despite Amazon's higher market cap [2] Market Capitalization - Walmart's market capitalization surpassing $1 trillion confirms its dominance in the retail industry [1] - The company joins a select group of firms valued at over $1 trillion, including Apple, Nvidia, Google-parent Alphabet, and Amazon [2] Investment Metrics - Market capitalization is an important metric, but the enterprise value-to-EBITDA ratio provides deeper insights into investor sentiment [3] - Walmart's enterprise multiple stands at 23.6 times, indicating that investors are willing to invest approximately $23.60 for every dollar of EBITDA [4] Comparison with Competitors - Amazon's EBITDA multiple is 14.2 times, while other retail companies like Tapestry and LVMH have multiples of 14.3 and 12.2 times, respectively [5] - Walmart's valuation is closer to Alphabet's 24.8 times, reflecting strong growth prospects driven by strategic business expansions [6] Strategic Positioning - Walmart's growth strategy includes diversifying into online advertising, third-party marketplaces, and fast delivery, similar to Amazon's approach [6] - The evolving business model positions Walmart to be increasingly compared with Amazon in the retail landscape [7]