Walgreens Boots Alliance, Inc.

NasdaqGS:WBA Stock Report

Market Cap: US$7.2b

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

  • 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 WBA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WBA ($8.24) is trading below our estimate of fair value ($15.94)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for WBA. This is calculated by dividing WBA's market cap by their current revenue.
What is WBA's PS Ratio?
PS Ratio0.05x
SalesUS$147.66b
Market CapUS$7.17b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for WBA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.9x
GRDN Guardian Pharmacy Services
1.1x6.6%US$1.4b
ACI Albertsons Companies
0.1x1.8%US$11.2b
BJ BJ's Wholesale Club Holdings
0.6x5.2%US$11.4b
SFM Sprouts Farmers Market
1.9x9.6%US$14.3b
WBA Walgreens Boots Alliance
0.05x1.5%US$7.2b

Price-To-Sales vs Peers: WBA 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 WBA's PS Ratio compare vs other companies in the US Consumer Retailing Industry?

13 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.0.4x4.5%
WBA Walgreens Boots Alliance
0.05x1.5%US$7.17b
UNFI United Natural Foods
0.04x0.1%US$1.31b
SPTN SpartanNash
0.06x1.4%US$615.01m
WBA 0.0xIndustry Avg. 0.4xNo. of Companies13PS00.40.81.21.62+
13 CompaniesEstimated GrowthMarket Cap
Industry Avg.0.4x9.9%
WBA Walgreens Boots Alliance
0.05x106.6%US$7.17b
No more companies

Price-To-Sales vs Industry: WBA is good value based on its Price-To-Sales Ratio (0x) compared to the US Consumer Retailing industry average (0.4x).


Price to Sales Ratio vs Fair Ratio

What is WBA'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.

WBA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.05x
Fair PS Ratio0.2x

Price-To-Sales vs Fair Ratio: WBA 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 WBA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$8.24
US$10.81
+31.2%
30.1%US$20.00US$7.00n/a16
Nov ’25US$9.46
US$10.84
+14.6%
30.6%US$20.00US$7.00n/a16
Oct ’25US$8.70
US$12.24
+40.7%
36.8%US$23.00US$7.00n/a16
Sep ’25US$9.25
US$13.15
+42.2%
35.7%US$23.00US$7.00n/a16
Aug ’25US$11.81
US$13.62
+15.3%
35.3%US$23.00US$7.00n/a16
Jul ’25US$11.58
US$15.65
+35.1%
32.1%US$23.33US$9.00n/a16
Jun ’25US$16.22
US$22.58
+39.2%
24.7%US$35.00US$13.00n/a16
May ’25US$17.34
US$23.10
+33.2%
21.3%US$35.00US$16.00n/a17
Apr ’25US$19.54
US$24.67
+26.2%
19.2%US$37.00US$19.00n/a17
Mar ’25US$21.49
US$25.47
+18.5%
17.0%US$37.00US$20.00n/a17
Feb ’25US$23.25
US$26.06
+12.1%
16.0%US$37.00US$21.00n/a16
Jan ’25US$26.11
US$26.64
+2.0%
16.5%US$37.00US$20.00n/a14
Dec ’24US$20.79
US$27.00
+29.9%
16.2%US$37.00US$20.00n/a13
Nov ’24US$20.63
US$27.38
+32.7%
14.4%US$37.00US$22.00US$9.4613
Oct ’24US$22.24
US$30.85
+38.7%
16.7%US$41.00US$22.00US$8.7013
Sep ’24US$23.43
US$32.43
+38.4%
14.2%US$41.00US$26.00US$9.2514
Aug ’24US$29.57
US$33.00
+11.6%
13.1%US$41.00US$27.00US$11.8114
Jul ’24US$28.49
US$34.00
+19.3%
12.6%US$41.00US$28.00US$11.5815
Jun ’24US$30.32
US$40.93
+35.0%
13.4%US$54.00US$32.00US$16.2214
May ’24US$34.61
US$41.14
+18.9%
12.6%US$54.00US$35.00US$17.3414
Apr ’24US$34.58
US$41.57
+20.2%
12.6%US$54.00US$35.00US$19.5414
Mar ’24US$35.20
US$42.00
+19.3%
12.2%US$54.00US$36.00US$21.4914
Feb ’24US$37.18
US$41.77
+12.3%
12.5%US$54.00US$36.00US$23.2513
Jan ’24US$37.36
US$42.08
+12.6%
13.2%US$54.00US$36.00US$26.1113
Dec ’23US$41.31
US$41.93
+1.5%
13.5%US$54.00US$36.00US$20.7913
Nov ’23US$36.26
US$39.74
+9.6%
9.1%US$48.00US$35.00US$20.6315

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.


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