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Why is the P/E ratio from Walmart Mexico so much worse than Walmart?
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@accelerate what do you mean? It's cheaper than Walmart?
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@accelerate what do you mean by worse PE?
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@paulgotthard bro do you know fundamentals of stocks? :D
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@accelerate bro is having a lower PE worse than a higher PE 😃
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What he means is that you cannot describe a PE ratio as "worse" since worse is subjective. Do you mean worse as in lower? or worse as in it is more expensive so it is worse for me. Big difference
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@paulgotthard okay fair. But why is walmart mexico so much cheaper than US? What do you think?
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@accelerate Walmex is cheaper than Walmart US because it operates in emerging markets, which are seen as riskier by investors. Despite Walmex's strong performance, the Mexican market's ups and downs, currency swings, and political uncertainty make investors more cautious. Walmex is also smaller and less diverse than Walmart Inc., so it gets a lower valuation. Additionally, Walmex has a higher free cash flow payout ratio of around 79% compared to Walmart's 55%. All these factors lead to Walmex having a lower price compared to its earnings and assets than Walmart Inc. I hope you get what i mean. Just my two cents!