Walgreens Stock Valuation

WBA
 Stock
  

USD 38.99  0.01  0.0257%   

Do you wonder what the value of Walgreens Boots Alliance is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Walgreens Boots, is its stock price multiplied by the total number of shares outstanding, calculating Walgreens Boots' enterprise value requires a different approach. It uses Walgreens Boots' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Free Cash Flow is expected to grow to about 6.3 B. The current year Enterprise Value is expected to grow to about 94.8 B.
Walgreens Boots Alliance maintains a prevalent Real Value of $47.19 per share. The last-minute price of the company is $38.99. At this time, the company appears to be undervalued. Our model calculates the value of Walgreens Boots Alliance from examining the company fundamentals such as Current Valuation of 72.92 B, profit margin of 4.00 %, and Return On Asset of 1.95 % as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we encourage taking in undervalued securities and trading overvalued securities since, at some point, asset prices and their ongoing real values will grow together.
  
Walgreens Boots Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Walgreens Boots's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Walgreens Most Recent Valuation Data

Price Book
1.28
Price Sales
0.25
Forward Annual Dividend Yield
0.0492
EBITDA
4.6 B
Dividend Share
1.91
Ex Dividend Date
2022-08-18
Beta
0.59
Undervalued
Today 38.99
Please note that Walgreens Boots' price fluctuation is very steady at this time. Calculation of the real value of Walgreens Boots Alliance is based on 3 months time horizon. Increasing Walgreens Boots' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Walgreens Boots Alliance is useful when determining the fair value of the Walgreens stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Walgreens Boots. Since Walgreens Boots is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Walgreens Stock. However, Walgreens Boots' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
47.19
Real Value
49.11
Upside
Estimating the potential upside or downside of Walgreens Boots Alliance helps investors to forecast how Walgreens stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Walgreens Boots more accurately as focusing exclusively on Walgreens Boots' fundamentals will not take into account other important factors:
Earnings
Estimates (6)
LowProjected EPSHigh
5.005.055.16
Details
Hype
Prediction
LowEstimated ValueHigh
37.1139.0340.95
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.321.421.51
Details
10 Analysts
Consensus
LowTarget PriceHigh
49.0054.5572.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Walgreens Boots' intrinsic value based on its ongoing forecasts of Walgreens Boots' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Walgreens Boots' closest peers. When choosing an evaluation method for Walgreens Boots Alliance, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Walgreens Boots Investments

4.57 Billion

Walgreens Valuation Drivers Correlation

Many accounts on the financial statements of Walgreens Boots Alliance are highly interrelated and sometimes correlated. Consequently, when conducting Walgreens's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Walgreens
Click cells to compare fundamentals

Walgreens Valuation Trend

Knowing Walgreens Boots' actual value is paramount for traders to make sound investment determinations. Walgreens Boots' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Walgreens Boots' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Walgreens Boots' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Walgreens Market Cap

Walgreens Boots Alliance is rated first in market capitalization category among related companies. Market capitalization of Pharmaceutical Retailers industry is at this time estimated at about 1.27 Trillion. Walgreens Boots holds roughly 33.68 Billion in market capitalization claiming about 2.65% of equities listed under Pharmaceutical Retailers industry.
Capitalization  Revenue  Total debt  Workforce  Valuation

Walgreens Boots Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Walgreens Boots's current stock value. Our valuation model uses many indicators to compare Walgreens Boots value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Walgreens Boots competition to find correlations between indicators driving Walgreens Boots's intrinsic value. More Info.
Walgreens Boots Alliance is rated first in beta category among related companies. It is rated first in five year return category among related companies reporting about  5.78  of Five Year Return per Beta. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Walgreens Boots by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Walgreens Boots' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Walgreens Boots' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Walgreens Boots' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Walgreens Boots and how it compares across the competition.

About Walgreens Boots Valuation

The equity valuation mechanism determines the current worth of Walgreens Boots Alliance on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Walgreens Boots Alliance. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Walgreens Boots Alliance based exclusively on its fundamental and basic technical indicators. By analyzing Walgreens Boots's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Walgreens Boots's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Walgreens Boots. We calculate exposure to Walgreens Boots's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Walgreens Boots's related companies.
Fiscal Year End
August
Industry
Pharmaceutical Retailers
Concentration
Drug Retail
Full Time Employees
315 K
Service Category
Food & Staples Retailing
Employer Id Number
47-1758322
Last ReportedProjected for 2022
Gross Profit26.9 B29 B
Profit Margin 2.21  2.88 
Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and beauty retail company. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois. Walgreens Boots operates under Pharmaceutical Retailers classification in the United States and is traded on NASDAQ Exchange. It employs 315000 people.
Walgreens Boots' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Walgreens Boots' value is low or high relative to the company's performance and growth projections. Determining the market value of Walgreens Boots can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Walgreens Boots represents a small ownership stake in the entity. As a stockholder of Walgreens, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Walgreens Boots Dividends Analysis For Valuation

The current year Dividends per Basic Common Share is expected to grow to 1.42, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (1.8 B). . Walgreens Boots Accumulated Retained Earnings Deficit are projected to increase significantly based on the last few years of reporting. The past year's Accumulated Retained Earnings Deficit were at 24.92 Billion. The current year Earnings per Basic Share is expected to grow to 3.69, whereas Earning Before Interest and Taxes EBIT is forecasted to decline to about 4.1 B.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-1.8 B-1.8 B
Dividend Yield 0.0162  0.0143 
Dividends per Basic Common Share 1.31  1.42 
There are various types of dividends Walgreens Boots can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Walgreens shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Walgreens Boots Alliance directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Walgreens pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Walgreens Boots by the value of the dividends paid out.

Walgreens Boots Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Walgreens Boots does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.39
Earnings Quarterly Growth-75.90%
Revenue Growth-4.20%
Payout Ratio32.37%
Enterprise Value To Ebitda15.82
Earnings Growth-76.00%
Enterprise Value To Revenue0.54

Walgreens Boots Current Valuation Indicators

Valuation refers to the process of determining the present value of Walgreens Boots Alliance and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Walgreens we look at many different elements of the entity such as Walgreens's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Walgreens Boots' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Walgreens Boots' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Walgreens Boots, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Walgreens Boots' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Walgreens Boots' worth.
Check out Your Current Watchlist. Note that the Walgreens Boots Alliance information on this page should be used as a complementary analysis to other Walgreens Boots' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Managers module to screen money managers from public funds and ETFs managed around the world.

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When running Walgreens Boots Alliance price analysis, check to measure Walgreens Boots' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Walgreens Boots is operating at the current time. Most of Walgreens Boots' value examination focuses on studying past and present price action to predict the probability of Walgreens Boots' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Walgreens Boots' price. Additionally, you may evaluate how the addition of Walgreens Boots to your portfolios can decrease your overall portfolio volatility.
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Is Walgreens Boots' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Walgreens Boots. If investors know Walgreens will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Walgreens Boots listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.76
Market Capitalization
33.7 B
Quarterly Revenue Growth YOY
-0.042
Return On Assets
0.0195
Return On Equity
0.18
The market value of Walgreens Boots Alliance is measured differently than its book value, which is the value of Walgreens that is recorded on the company's balance sheet. Investors also form their own opinion of Walgreens Boots' value that differs from its market value or its book value, called intrinsic value, which is Walgreens Boots' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Walgreens Boots' market value can be influenced by many factors that don't directly affect Walgreens Boots' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Walgreens Boots' value and its price as these two are different measures arrived at by different means. Investors typically determine Walgreens Boots value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Walgreens Boots' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.