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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Walgreens Boots Alliance Inc. To summarize, we found that Walgreens Boots Alliance Inc ranked in the 72th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 218.83%. The most interesting components of our discounted cash flow analysis for Walgreens Boots Alliance Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 48. Notably, its equity weight is greater than merely 19.11% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
Walgreens Boots Alliance Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 3.06% of tickers in our DCF set.
WBA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 3.06% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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DOW UPDATE Dragged down by declines for shares of Raytheon Technologies Corp. and Walgreens Boots, the Dow Jones Industrial Average is declining Thursday morning. The Dow (DJIA) was most recently trading 127 points lower (-0.
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