Walgreens Boots Alliance, Inc.

NasdaqGS:WBA Stock Report

Market Cap: US$8.3b

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 ($9.55) is trading below our estimate of fair value ($15.93)

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 Ratio0.06x
SalesUS$147.66b
Market CapUS$8.26b

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
1.2x6.6%US$1.4b
ACI Albertsons Companies
0.1x1.8%US$11.3b
BJ BJ's Wholesale Club Holdings
0.6x5.6%US$12.4b
SFM Sprouts Farmers Market
1.8x9.6%US$13.2b
WBA Walgreens Boots Alliance
0.06x1.5%US$8.3b

Price-To-Sales vs Peers: WBA is good value based on its Price-To-Sales Ratio (0.1x) 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?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.0.4x4.5%
WBA Walgreens Boots Alliance
 0.06x1.5%US$8.26b
UNFI United Natural Foods
0.05x0.4%US$1.55b
SPTN SpartanNash
0.07x1.4%US$654.84m
WBA 0.1xIndustry Avg. 0.4xNo. of Companies11PS00.40.81.21.62+
11 CompaniesEstimated GrowthMarket Cap
Industry Avg.0.4x10.3%
WBA Walgreens Boots Alliance
 0.06x105.1%US$8.26b
No more companies

Price-To-Sales vs Industry: WBA is good value based on its Price-To-Sales Ratio (0.1x) 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 Ratio0.06x
Fair PS Ratio0.2x

Price-To-Sales vs Fair Ratio: WBA is good value based on its Price-To-Sales Ratio (0.1x) 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$9.55
US$10.36
+8.5%
32.0%US$20.00US$7.00n/a14
Dec ’25US$9.02
US$10.87
+20.5%
30.8%US$20.00US$7.00n/a15
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$20.00US$9.0213
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 01:47
End of Day Share Price 2024/12/20 00:00
Earnings2024/08/31
Annual Earnings2024/08/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Walgreens Boots Alliance, Inc. is covered by 48 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Christopher GrajaArgus Research Company
Samuel HudsonAtlantic Equities LLP
Eric ColdwellBaird