Analyst Note
| Zain Akbari, CFA |Our $152 per share valuation of wide-moat Walmart should slide by nearly 10%, not far from the market’s reaction to first-quarter earnings that saw greater-than-anticipated margin pressure caused by pandemic-related factors and inflation. Still, we believe Walmart’s value proposition should become increasingly valuable to strained consumers and expect low-single-digit annual percentage sales growth and mid-single-digit adjusted operating margins over the next decade. Prospective investors should await a more attractive entry point.