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
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 | 136,866 | 139,537 | 132,509 | 132,703 | 139,081 | 139,730.34 | 140,382.71 | 141,038.12 | 141,696.60 | 142,358.15 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 5,594 | 5,484 | 5,555 | 3,899 | 2,258 | 4,686.88 | 4,708.76 | 4,730.75 | 4,752.84 | 4,775.03 |
| 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 | 3,892 | 4,110 | 4,176 | 2,165 | 141 | 2,982.81 | 2,996.73 | 3,010.72 | 3,024.78 | 3,038.90 |
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 | 136,866 | 139,537 | 132,509 | 132,703 | 139,081 | 139,730.34 | 140,382.71 | 141,038.12 | 141,696.60 | 142,358.15 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 5,594 | 5,484 | 5,555 | 3,899 | 2,258 | 4,686.88 | 4,708.76 | 4,730.75 | 4,752.84 | 4,775.03 |
| 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 | 3,892 | 4,110 | 4,176 | 2,165 | 141 | 2,982.81 | 2,996.73 | 3,010.72 | 3,024.78 | 3,038.90 |
| WACC | ||||||||||
| PV LFCF | 2,859.83 | 2,754.73 | 2,653.49 | 2,555.97 | 2,462.04 | |||||
| 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 |