Amazon’s market cap is currently $178 Billion which puts the company 71% of the way to Walmart’s $251 B market cap. That price implies that $AMZN is not too far from unseating $WMT as the king of retail, but looking at the facts Walmart is still by far the largest retailer in the world and Amazon trails by some distance.
Amazon only generates 15% as much revenue as Walmart does and only 2% of Walmart’s operating income. Even if Amazon grew its revenue at 25% per year (an acceleration from its current pace) it would take 8.5 more years for Amazon’s revenue to match Walmart’s current revenue.
Assuming that Amazon’s operations do eventually match Walmart’s 8.5 years from now, and also assuming that Amazon is able to expand its operating margin to match Walmart’s, then at that point perhaps even a value investor could be comfortable with Amazon matching Walmart’s $250 B market cap. If the stock does appreciate by that much it would work out to a 41% gain. That’s 4.1% annualized over an 8.5 year time frame.