Walgreens Boots Alliance

NasdaqGS:WBA Stock Report

Mkt Cap: US$35.2b

We’ve recently updated our valuation analysis.

Walgreens Boots Alliance Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

WBA 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/Revenue0.6x
Enterprise Value/EBITDA15.6x
PEG Ratio-2.3x

Price to Earnings Ratio vs Peers

How does WBA's PE Ratio compare to its peers?

The above table shows the PE ratio for WBA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.7x
KR Kroger
14.3x7.8%US$33.6b
SYY Sysco
29.5x12.1%US$42.7b
ACI Albertsons Companies
8x3.7%US$11.5b
BJ BJ's Wholesale Club Holdings
18.9x5.7%US$9.3b
WBA Walgreens Boots Alliance
8.1x-3.6%US$35.2b

Price-To-Earnings vs Peers: WBA is good value based on its Price-To-Earnings Ratio (8.1x) compared to the peer average (17.7x).


Price to Earnings Ratio vs Industry

How does WBA's PE Ratio compare vs other companies in the US Consumer Retailing Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.5%
n/an/an/a

Price-To-Earnings vs Industry: WBA is good value based on its Price-To-Earnings Ratio (8.1x) compared to the US Consumer Retailing industry average (19.5x)


Price to Earnings Ratio vs Fair Ratio

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

WBA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.1x
Fair PE Ratio17.9x

Price-To-Earnings vs Fair Ratio: WBA is good value based on its Price-To-Earnings Ratio (8.1x) compared to the estimated Fair Price-To-Earnings Ratio (17.9x).


Share Price vs Fair Value

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

Below Fair Value: WBA ($40.65) is trading below our estimate of fair value ($136.34)

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


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 WBA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$40.65
US$42.08
+3.5%
13.2%US$54.00US$36.00n/a13
Dec ’23US$41.31
US$41.93
+1.5%
13.5%US$54.00US$36.00n/a13
Nov ’23US$36.26
US$39.74
+9.6%
9.1%US$48.00US$35.00n/a15
Oct ’23US$31.40
US$42.10
+34.1%
8.4%US$49.00US$35.00n/a15
Sep ’23US$35.26
US$42.83
+21.5%
6.6%US$49.00US$39.00n/a15
Aug ’23US$39.89
US$42.84
+7.4%
6.4%US$49.00US$39.00n/a16
Jul ’23US$38.56
US$44.56
+15.6%
8.1%US$52.00US$40.00n/a16
Jun ’23US$43.26
US$48.14
+11.3%
6.1%US$52.30US$43.00n/a16
May ’23US$42.40
US$49.19
+16.0%
4.6%US$52.30US$44.00n/a17
Apr ’23US$43.86
US$50.66
+15.5%
6.3%US$56.00US$44.00n/a17
Mar ’23US$45.01
US$53.72
+19.4%
9.1%US$70.00US$48.00n/a17
Feb ’23US$49.75
US$54.52
+9.6%
11.2%US$70.00US$48.00n/a18
Jan ’23US$52.16
US$53.65
+2.9%
11.6%US$70.00US$44.00n/a19
Dec ’22US$43.72
US$53.86
+23.2%
11.0%US$70.00US$44.00US$41.3119
Nov ’22US$47.32
US$53.97
+14.0%
10.8%US$70.00US$44.00US$36.2619
Oct ’22US$46.80
US$53.13
+13.5%
11.3%US$70.00US$44.00US$31.4019
Sep ’22US$50.29
US$52.31
+4.0%
9.2%US$68.00US$44.00US$35.2618
Aug ’22US$47.15
US$52.97
+12.3%
9.7%US$68.00US$44.00US$39.8918
Jul ’22US$48.71
US$56.00
+15.0%
9.9%US$72.00US$47.00US$38.5618
Jun ’22US$52.84
US$55.74
+5.5%
11.3%US$72.00US$42.00US$43.2619
May ’22US$53.10
US$55.32
+4.2%
11.9%US$72.00US$42.00US$42.4019
Apr ’22US$54.75
US$52.53
-4.1%
12.4%US$72.00US$42.00US$43.8619
Mar ’22US$47.85
US$47.58
-0.6%
12.9%US$64.00US$37.00US$45.0119
Feb ’22US$48.83
US$47.21
-3.3%
12.2%US$64.00US$37.00US$49.7519
Jan ’22US$39.88
US$40.17
+0.7%
6.8%US$45.00US$33.00US$52.1618
Dec ’21US$38.46
US$39.78
+3.4%
6.1%US$43.00US$33.00US$43.7218

Analyst Forecast: Target price is less than 20% higher than the current share price.


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