Walmart Stock History and Valuation

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Walmart completed its initial public offering on October 1, 1970, on the New York Stock Exchange at $16.50 per share, raising approximately $5 million with a market capitalization of approximately $25 million. The stock has undergone 11 splits since then, including ten 2-for-1 splits between 1971 and 1999 and a 3-for-1 split on February 26, 2024, the first split in 25 years, bringing the cumulative split factor to approximately 3,072x. Walmart has paid and increased its dividend every year since 1974, qualifying it as a Dividend King with more than 50 consecutive years of increases.

The 1970 IPO

Walmart went public on October 1, 1970, on the New York Stock Exchange under the ticker WMT, at $16.50 per share. The offering raised approximately $5 million for the company, with a market capitalization at the time of approximately $25 million. The company had approximately $31 million in annual sales at the point of its IPO, a figure that is now less than one-twentieth of a single day of Walmart's current revenue.

Sam Walton had founded the first Walmart store in Rogers, Arkansas, in 1962. By the time of the IPO, the company operated 18 Walmart stores and was primarily a regional discount retailer in the American South and Midwest. Going public gave Walmart access to capital it used to expand its store count at a pace that would eventually make it the largest retailer in the world.

Eleven stock splits: 1971 to 2024

Walmart has completed 11 stock splits since its 1970 IPO. The first ten were all 2-for-1 splits occurring between October 1971 and March 1999. After a 25-year pause, Walmart executed a 3-for-1 split on February 26, 2024, the first split of its shares since 1999. The cumulative multiplication factor from all 11 splits is 2 raised to the power of 10 multiplied by 3, equaling 3,072. A single share purchased at the $16.50 IPO price represents approximately 3,072 shares after the 2024 split.

The ten 2-for-1 splits between 1971 and 1999 each halved the share price and doubled the number of shares outstanding, reflecting Walmart's rapid growth from a regional retailer into a national and then international presence. After 1999 the share price was allowed to appreciate without the mechanical reduction that splits provide. The 2024 3-for-1 split was Walmart's stated goal of making the shares more accessible to employees and retail investors after the price had risen well above $150 in the years following the last split.

Market capitalization milestones

Walmart's market capitalization trajectory reflects its rise from a small-cap regional retailer at its 1970 IPO to one of the largest companies by market value in the world by the mid-2020s.

Unlike some technology companies that experienced sharp boom-and-bust cycles, Walmart's market capitalization grew in a relatively steady upward arc tied to its steady earnings growth and annual dividend increases. The $500 billion crossing in approximately 2023 and the subsequent appreciation to above $700 billion in late 2024 reflected the market's growing recognition of the value of Walmart's advertising business, Walmart+, and the scale advantages that become more valuable in an inflationary consumer environment.

Dividend history and Dividend King status

Walmart has paid a cash dividend every year since 1974 and has increased the dividend every year since, giving it more than 50 consecutive years of dividend increases. This streak qualifies Walmart as a Dividend King, a distinction held by very few publicly traded companies. Walmart's fiscal year runs from February to January, so FY2025 refers to the period ending January 2025.

The dividend amounts quoted above are on a post-2024-split basis. On a pre-split equivalent basis, the FY2025 annualized dividend would be approximately $2.49 per share (multiplying the post-split figure by 3). Walmart prioritizes the regular dividend as its primary capital return mechanism, with share buybacks treated as a secondary use of capital, unlike some companies that weight buybacks more heavily.

Share repurchases

Walmart maintains an active share repurchase program, though buybacks are secondary in priority to the dividend in the company's capital allocation framework. Repurchase activity is typically moderate relative to Walmart's free cash flow, reflecting the company's preference for sustaining and growing its dividend streak.

Buyback volumes reflect the scale of Walmart's investment priorities. The company directs substantial capital toward store remodeling, supply chain technology, fulfillment infrastructure for e-commerce, and its growing advertising and membership businesses. Repurchases reduce diluted share count gradually over time but are not the dominant driver of per-share earnings growth that they are for some capital-light businesses.

Dow Jones Industrial Average membership

Walmart was added to the Dow Jones Industrial Average on February 14, 1997, replacing Woolworth. As of the date this page was written, Walmart remains a Dow component. Because the Dow is a price-weighted index, Walmart's weight in the index is determined by its share price rather than its market capitalization, which means the 2024 3-for-1 split reduced Walmart's Dow weighting proportionally to the split factor at the time the split took effect, even though the company's underlying business and market cap were unchanged by the split.

Valuation framework

Walmart trades at a meaningful premium to most traditional retail peers across standard valuation multiples. The premium reflects the quality of the business: scale advantages in purchasing and logistics, a consistent earnings growth record, Dividend King status, and the emergence of high-margin ancillary businesses that change the long-term earnings mix.

Price-to-earnings and forward P/E

Walmart's forward price-to-earnings ratio is the most widely cited primary valuation metric. The company's consistent earnings growth and dividend reliability support a higher multiple than most retailers. The premium compresses when consumer spending slows and expands when high-margin businesses such as Walmart Connect advertising and Walmart+ membership are growing faster than the core retail operations, shifting the earnings mix toward higher-multiple revenue streams.

EV/EBITDA and free cash flow yield

EV/EBITDA is often used alongside P/E to control for differences in capital structure and depreciation across the retail sector. Free cash flow yield, calculated as free cash flow divided by market capitalization, reflects how much distributable cash the business generates relative to its price. Because Walmart carries significant capital expenditure to maintain and remodel its vast store base and invest in e-commerce fulfillment, the relationship between reported earnings and free cash flow is a meaningful valuation input. Analysts distinguish between maintenance capex and growth capex when projecting normalized free cash flow.

Comparison to Costco

Analysts frequently compare Walmart to Costco when evaluating the membership and warehouse club dimensions of both businesses. Costco's membership renewal rates and the premium it commands on membership-driven metrics serve as a benchmark for how Walmart+ could be valued if it sustains high renewal rates and cross-sells additional services. Walmart's scale in grocery, pharmacy, and general merchandise gives it a different competitive moat than Costco, but both companies benefit from high customer switching costs built through habitual shopping patterns.

Dividend yield

At the premium valuation multiples at which Walmart typically trades, the dividend yield is low relative to the broad market. However, for investors focused on dividend growth rather than current yield, the 50-plus-year record of consecutive increases and the payout's coverage by substantial free cash flow makes Walmart a core Dividend King holding rather than a high-yield income instrument.

Frequently Asked Questions

More on Walmart (WMT)

• Walmart Inc. (WMT) company profile

References

• Walmart Investor Relations: Annual Reports and Proxies
• SEC EDGAR: Walmart Form 10-K Filings (CIK 0000104169)
• S&P Dow Jones Indices: Dow Jones Industrial Average