Walgreens Boots Alliance Valuation

Q: What is the Fair Price of W8A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

W8A (€7.84) is trading below our estimate of [[fair value]] (€16.4)

Is W8A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of W8A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: W8A (€7.84) is trading below our estimate of fair value (€16.4)

Significantly Below Fair Value: W8A is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for W8A?

Key metric: As W8A is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for W8A. This is calculated by dividing W8A's market cap by their current revenue.
What is W8A's PS Ratio?
PS Ratio	0.05x
Sales	US$147.66b
Market Cap	US$7.12b

W8A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.3x
Enterprise Value/EBITDA	13.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does W8A's PS Ratio compare to its peers?

The above table shows the PS ratio for W8A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.9x
RDC Redcare Pharmacy	1.3x	17.6%	€2.9b
HFG HelloFresh	0.2x	3.7%	€1.6b
B4B Metro	0.05x	2.9%	€1.5b
241 Alibaba Health Information Technology	2x	10.4%	HK$60.5b
W8A Walgreens Boots Alliance	0.05x	1.5%	€7.1b

Price-To-Sales vs Peers: W8A is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (0.9x).

Price to Sales Ratio vs Industry

How does W8A's PS Ratio compare vs other companies in the European Consumer Retailing Industry?

11 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.3x	4.4%
W8A Walgreens Boots Alliance	0.05x	1.5%	US$7.12b

11 Companies		Estimated Growth	Market Cap
Industry Avg.	0.3x	11.2%
W8A Walgreens Boots Alliance	0.05x	105.1%	US$7.12b

No more companies

Price-To-Sales vs Industry: W8A is good value based on its Price-To-Sales Ratio (0x) compared to the European Consumer Retailing industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is W8A's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

W8A PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.05x
Fair PS Ratio	0.2x

Price-To-Sales vs Fair Ratio: W8A is good value based on its Price-To-Sales Ratio (0x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst W8A forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	€7.84	€10.20 +30.1%	30.1%	€18.88	€6.61	n/a	16
Nov ’25	€8.71	€10.05 +15.4%	30.6%	€18.54	€6.49	n/a	16
Oct ’25	€7.85	€11.06 +41.0%	36.8%	€20.78	€6.32	n/a	16
Sep ’25	€8.35	€11.87 +42.2%	35.7%	€20.77	€6.32	n/a	16
Aug ’25	€10.80	€12.57 +16.4%	35.3%	€21.22	€6.46	n/a	16
Jul ’25	€10.96	€14.57 +32.9%	32.1%	€21.73	€8.38	n/a	16
Jun ’25	€14.22	€20.82 +46.4%	24.7%	€32.26	€11.98	n/a	16
May ’25	€16.67	€21.60 +29.5%	21.3%	€32.72	€14.96	n/a	17
Apr ’25	€20.20	€22.86 +13.2%	19.2%	€34.29	€17.61	n/a	17
Mar ’25	€19.85	€23.47 +18.3%	17.0%	€34.10	€18.43	n/a	17
Feb ’25	€21.36	€23.92 +12.0%	16.0%	€33.96	€19.28	n/a	16
Jan ’25	€24.15	€24.19 +0.2%	16.5%	€33.60	€18.16	n/a	14
Dec ’24	€18.62	€24.81 +33.2%	16.2%	€34.00	€18.38	n/a	13
Nov ’24	€19.57	€25.68 +31.2%	14.4%	€34.70	€20.63	€8.71	13
Oct ’24	€21.13	€29.21 +38.2%	16.7%	€38.82	€20.83	€7.85	13
Sep ’24	€21.90	€29.98 +36.9%	14.2%	€37.90	€24.03	€8.35	14
Aug ’24	€26.88	€29.93 +11.4%	13.1%	€37.19	€24.49	€10.80	14
Jul ’24	€25.96	€31.16 +20.0%	12.6%	€37.57	€25.66	€10.96	15
Jun ’24	€28.43	€37.85 +33.1%	13.4%	€49.93	€29.59	€14.22	14
May ’24	€31.87	€37.34 +17.2%	12.6%	€49.01	€31.76	€16.67	14
Apr ’24	€31.81	€38.35 +20.6%	12.6%	€49.82	€32.29	€20.20	14
Mar ’24	€33.02	€39.61 +20.0%	12.2%	€50.93	€33.96	€19.85	14
Feb ’24	€33.37	€38.51 +15.4%	12.5%	€49.78	€33.19	€21.36	13
Jan ’24	€35.02	€40.12 +14.6%	13.2%	€51.48	€34.32	€24.15	13
Dec ’23	€39.95	€40.58 +1.6%	13.5%	€52.26	€34.84	€18.62	13
Nov ’23	€36.70	€40.25 +9.7%	9.1%	€48.62	€35.45	€19.57	15

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.