Walgreens Boots Alliance operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online. The company was founded in 1901 and is based in Deerfield, Illinois.
WBA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Walgreens Boots Alliance Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Walgreens Boots Alliance Inc ranked in the 27th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Walgreens Boots Alliance Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 0.07 -- which is good for besting just 18.01% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
The company's compound free cash flow growth rate over the past 5.75 years comes in at -0.01%; that's greater than just 23.25% of US stocks we're applying DCF forecasting to.
51% of the company's capital comes from equity, which is greater than only 20.86% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WBA, try LNDC, DAR, KOF, PFGC, and EL.
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A former Arkansas health official is sounding alarms about the pace of coronavirus vaccines being administered to residents of long-term care facilities under a U.S. plan that puts major pharmacy chains CVS and Walgreens in charge of many of the shots. Fewer than 10% of doses allocated to those Arkansas seniors have been administered, according to the state health department. The two pharmacies are working with about 40% of the state's facilities.
One key to unlocking the logjam of COVID-19 vaccines is in plain view but so far overlooked: the neighborhood retail pharmacy. As of Monday, 9 million people had received at least one dose of the Pfizer (PFE) or Moderna (MRNA) vaccines since they were approved in December. Pfizer’s vaccine must be stored at minus 70 degrees Celsius which complicates inoculation efforts that are not close to specialty freezers.
OFP Real Estate, LLC (a/k/a One Family Property) ("OFP") announced today that it closed on the acquisition of a net-leased investment tenanted by Walgreens Boots Alliance (NASDAQ: WBA) located in a Cleveland, Ohio metro market. The investment was acquired with a long-term lease in place, providing stable, strong, and predictable returns. This transaction marked the companies first 2021 acquisition.