Walgreens Boots Valuation
| WBA Stock | USD 18.05 0.17 0.93% |
At this time, the company appears to be undervalued. Walgreens Boots Alliance maintains a prevalent Real Value of $19.17 per share. The last-minute price of the company is $18.05. Our model calculates the value of Walgreens Boots Alliance from examining the company fundamentals such as Return On Asset of 0.0112, profit margin of (0.04) %, and Current Valuation of 51.2 B as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors encourage taking in undervalued securities and trading overvalued securities since, at some point, asset prices and their ongoing real values will grow together. Key fundamental drivers impacting Walgreens Boots' valuation include:
Price Book 1.1432 | Enterprise Value 51.2 B | Enterprise Value Ebitda (4.31) | Price Sales 0.1065 | Forward PE 5.3996 |
Undervalued
Today
Please note that Walgreens Boots' price fluctuation is not too volatile at this time. Calculation of the real value of Walgreens Boots Alliance is based on 3 months time horizon. Increasing Walgreens Boots' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Walgreens Boots Alliance is useful when determining the fair value of the Walgreens stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Walgreens Boots. Since Walgreens Boots is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Walgreens Stock. However, Walgreens Boots' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 18.05 | Real 19.17 | Target 26.11 | Hype 18.05 | Naive 18.77 |
The real value of Walgreens Stock, also known as its intrinsic value, is the underlying worth of Walgreens Boots Alliance Company, which is reflected in its stock price. It is based on Walgreens Boots' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Walgreens Boots' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Walgreens Boots' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Walgreens Boots Alliance helps investors to forecast how Walgreens stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Walgreens Boots more accurately as focusing exclusively on Walgreens Boots' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Walgreens Boots' intrinsic value based on its ongoing forecasts of Walgreens Boots' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Walgreens Boots' closest peers. When choosing an evaluation method for Walgreens Boots Alliance, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Walgreens Boots Investments |
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Walgreens Valuation Trend
Knowing Walgreens Boots' actual value is paramount for traders to make sound investment determinations. Walgreens Boots' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Walgreens Boots' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Walgreens Boots' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Walgreens Market Cap
Walgreens Boots Alliance is rated first in market capitalization category among related companies. Market capitalization of Consumer Staples industry is at this time estimated at about 639.16 Billion. Walgreens Boots holds roughly 15.31 Billion in market capitalization claiming about 2.4% of stocks in Consumer Staples industry.Walgreens Boots Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Walgreens Boots's current stock value. Our valuation model uses many indicators to compare Walgreens Boots value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Walgreens Boots competition to find correlations between indicators driving Walgreens Boots's intrinsic value. More Info.Walgreens Boots Alliance is rated first in price to earning category among related companies. It is rated first in price to book category among related companies fabricating about 0.14 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Walgreens Boots Alliance is roughly 7.09 . As of April 25, 2024, Price To Book Ratio is expected to decline to 1.19. Comparative valuation analysis is a catch-all model that can be used if you cannot value Walgreens Boots by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Walgreens Boots' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Walgreens Boots' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Walgreens Boots' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Walgreens Boots and how it compares across the competition.
About Walgreens Boots Valuation
The stock valuation mechanism determines the current worth of Walgreens Boots Alliance on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Walgreens Boots Alliance. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Walgreens Boots Alliance based exclusively on its fundamental and basic technical indicators. By analyzing Walgreens Boots's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Walgreens Boots's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Walgreens Boots. We calculate exposure to Walgreens Boots's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Walgreens Boots's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 31.1 B | 32.7 B | |
| Pretax Profit Margin | (0.04) | (0.04) | |
| Operating Profit Margin | (0.06) | (0.05) | |
| Net Loss | (0.03) | (0.02) | |
| Gross Profit Margin | 0.22 | 0.30 |
Walgreens Boots Quarterly Retained Earnings |
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8 Steps to conduct Walgreens Boots' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Walgreens Boots' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Walgreens Boots' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Walgreens Boots' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Walgreens Boots' revenue streams: Identify Walgreens Boots' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Walgreens Boots' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Walgreens Boots' growth potential: Evaluate Walgreens Boots' management, business model, and growth potential.
- Determine Walgreens Boots' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Walgreens Boots' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Walgreens Boots represents a small ownership stake in the entity. As a stockholder of Walgreens, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Walgreens Boots Dividends Analysis For Valuation
At present, Walgreens Boots' Dividends Paid is projected to increase significantly based on the last few years of reporting. The current year's Dividend Yield is expected to grow to 0.07, whereas Dividend Payout Ratio is projected to grow to (0.46). . The current year's Retained Earnings is expected to grow to about 39.9 B, whereas Retained Earnings Total Equity is forecasted to decline to about 35.7 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 1.9 B | 2 B | |
| Dividend Yield | 0.07 | 0.07 | |
| Dividend Payout Ratio | (0.48) | (0.46) | |
| Dividend Paid And Capex Coverage Ratio | (5.67) | (5.39) |
There are various types of dividends Walgreens Boots can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Walgreens shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Walgreens Boots Alliance directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Walgreens pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Walgreens Boots by the value of the dividends paid out.
Walgreens Boots Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Walgreens Boots does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 863.2 M | |
| Quarterly Earnings Growth Y O Y | -0.586 | |
| Forward Price Earnings | 5.3996 |
Walgreens Boots Current Valuation Indicators
Valuation refers to the process of determining the present value of Walgreens Boots Alliance and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Walgreens we look at many different elements of the entity such as Walgreens's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Walgreens Boots' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Walgreens Boots' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Walgreens Boots, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Walgreens Boots' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Walgreens Boots' worth.When determining whether Walgreens Boots Alliance offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Walgreens Boots' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Walgreens Boots Alliance Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Walgreens Boots Alliance Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Walgreens Boots Alliance. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics. Note that the Walgreens Boots Alliance information on this page should be used as a complementary analysis to other Walgreens Boots' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Complementary Tools for Walgreens Stock analysis
When running Walgreens Boots' price analysis, check to measure Walgreens Boots' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Walgreens Boots is operating at the current time. Most of Walgreens Boots' value examination focuses on studying past and present price action to predict the probability of Walgreens Boots' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Walgreens Boots' price. Additionally, you may evaluate how the addition of Walgreens Boots to your portfolios can decrease your overall portfolio volatility.
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Is Walgreens Boots' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Walgreens Boots. If investors know Walgreens will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Walgreens Boots listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.59) | Dividend Share 1.69 | Earnings Share (7.00) | Revenue Per Share 167.542 | Quarterly Revenue Growth 0.063 |
The market value of Walgreens Boots Alliance is measured differently than its book value, which is the value of Walgreens that is recorded on the company's balance sheet. Investors also form their own opinion of Walgreens Boots' value that differs from its market value or its book value, called intrinsic value, which is Walgreens Boots' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Walgreens Boots' market value can be influenced by many factors that don't directly affect Walgreens Boots' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Walgreens Boots' value and its price as these two are different measures arrived at by different means. Investors typically determine if Walgreens Boots is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Walgreens Boots' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.