Discounted Cash Flow (DCF) Analysis Levered

Walgreens Boots Alliance, Inc. (WBA)

$22.91

+1.53 (+7.16%)
All numbers are in Millions, Currency in USD
Stock DCF: 103.88 | 22.91 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 136,866139,537132,509132,703139,081139,730.34140,382.71141,038.12141,696.60142,358.15
Revenue (%)
Operating Cash Flow 5,5945,4845,5553,8992,2584,686.884,708.764,730.754,752.844,775.03
Operating Cash Flow (%)
Capital Expenditure -1,702-1,374-1,379-1,734-2,117-1,704.08-1,712.03-1,720.03-1,728.06-1,736.12
Capital Expenditure (%)
Free Cash Flow 3,8924,1104,1762,1651412,982.812,996.733,010.723,024.783,038.90

Weighted Average Cost Of Capital

Share price $ 22.91
Beta 0.748
Diluted Shares Outstanding 863.20
Cost of Debt
Tax Rate 43.16
After-tax Cost of Debt 2.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.641
Total Debt 33,534
Total Equity 19,775.91
Total Capital 53,309.91
Debt Weighting 62.90
Equity Weighting 37.10
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 136,866139,537132,509132,703139,081139,730.34140,382.71141,038.12141,696.60142,358.15
Operating Cash Flow 5,5945,4845,5553,8992,2584,686.884,708.764,730.754,752.844,775.03
Capital Expenditure -1,702-1,374-1,379-1,734-2,117-1,704.08-1,712.03-1,720.03-1,728.06-1,736.12
Free Cash Flow 3,8924,1104,1762,1651412,982.812,996.733,010.723,024.783,038.90
WACC
PV LFCF 2,859.832,754.732,653.492,555.972,462.04
SUM PV LFCF 13,286.07

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.30
Free cash flow (t + 1) 3,099.68
Terminal Value 134,768.65
Present Value of Terminal Value 109,186.10

Intrinsic Value

Enterprise Value 122,472.16
Net Debt 32,806
Equity Value 89,666.16
Shares Outstanding 863.20
Equity Value Per Share 103.88