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Consumer Staples · Consumer Staples Merchandise Retail

Walmart Inc. (WMT) — WACC

The weighted average cost of capital for Walmart Inc. at 2026-06-30, calculated using the Baratelli Institute methodology and sourced to the most recent public filings. The number below is a practitioner reference — free to use, free to cite, refreshed quarterly.

Snapshot: 2026-06-30 · Next refresh: 2026-09-30 · Methodology →

WACC
7.0%
Blended cost of capital
Cost of Equity (Ke)
7.3%
Rf + β × ERP
Beta
0.55
5-yr weekly, Blume-adjusted
After-tax Kd
3.6%
Pre-tax × (1 − t)

The Calculation, Walked

ComponentValueSource / Assumption
Risk-free rate (Rf)4.25%10-year US Treasury yield at snapshot date
Equity risk premium (ERP)5.55%Damodaran implied ERP, June 2026 update
Beta (β)0.555-year weekly regression vs S&P 500, Blume-adjusted
Cost of equity (Ke)7.3%CAPM: Rf + β × ERP = 4.25% + 0.55 × 5.55%
Pre-tax cost of debt (Kd)4.70%Current-yield estimate on senior unsecured debt at issuer's rating
Marginal tax rate (t)24.0%Blended federal + state; company-specific effective rate
After-tax cost of debt3.6%Kd × (1 − t) = 4.70% × 76.0%
Equity weight (E/V)93.0%Market value of equity ÷ total capitalization
Debt weight (D/V)7.0%Market value of debt ÷ total capitalization
WACC7.0%(E/V × Ke) + (D/V × Kd after-tax)

Practitioner Notes

Walmart's low beta reflects the defensive nature of its consumer staples exposure. The AA credit rating keeps cost of debt tight to Treasuries. Practitioner note: Walmart's capital allocation increasingly resembles a technology operator (Walmart Connect, Vizio, Sam's Club digital) which may pressure beta upward in future years as the mix shifts.

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Where This Number Fits

Use this WACC as the discount rate in an enterprise-value DCF, the hurdle rate for value-based management analysis of WMT, or the cost-of-capital anchor when comparing WMT to peers in the Consumer Staples Merchandise Retail industry. For equity-only valuation frameworks (dividend discount models, residual income), use the cost of equity Ke of 7.3% instead of the blended WACC.

The methodology page walks each input in more depth and explains where reasonable practitioners disagree. If your own model uses different inputs, the companion Excel workbook exposes every formula so you can substitute directly.

Cite This Page

Baratelli Institute. “Walmart Inc. (WMT) — WACC.” Baratelli WACC Reference. Snapshot date 2026-06-30.
https://baratelliinstitute.com/wacc/wmt.html

Related WACC calculations

Consumer Staples sector peers in this reference: COST (Costco Wholesale Corporation), KO (The Coca-Cola Company), PEP (PepsiCo, Inc.), KHC (The Kraft Heinz Company).

All 25 companies in the Baratelli WACC reference: The full WACC Reference Library (73 companies) — sorted, filterable, exportable to Excel.

How every input is calculated: The Baratelli WACC methodology page — CAPM, cost of equity, after-tax cost of debt, weighting.

Your own inputs, live: The interactive WACC calculator — enter any company's beta, D/E, and coupon assumptions.

The applied companion: The Baratelli CFO & Controller's Guide covers WACC methodology within a full controllership framework.

Related WACC references

KO
Coca-Cola
PEP
PepsiCo
KDP
Keurig Dr Pepper
KHC
Kraft Heinz
COST
Costco
PG
Procter & Gamble

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