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:
Below please find a table outlining a discounted cash flow forecast for WBA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Walgreens Boots Alliance Inc ranked in the 64th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 135%. In terms of the factors that were most noteworthy in this DCF analysis for WBA, they are:
Walgreens Boots Alliance Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 4.54% of tickers in our DCF set.
As a business, Walgreens Boots Alliance Inc experienced a tax rate of about 8% over the past twelve months; relative to its sector (Consumer Defensive), this tax rate is higher than only 24.03% of stocks generating free cash flow.
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 LOPE, UL, CCEP, KOF, and CASY.