Discounted Cash Flow (DCF) Analysis Levered

Walgreens Boots Alliance, Inc. (WBA)

$40.07

+0.17 (+0.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 246.02 | 40.07 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 118,214131,537136,866139,537132,509136,562.60140,740.21145,045.61149,482.72154,055.57
Revenue (%)
Operating Cash Flow 7,2518,2655,5945,4845,5556,726.186,931.947,143.997,362.547,587.76
Operating Cash Flow (%)
Capital Expenditure -1,351-1,367-1,702-1,374-1,379-1,488.81-1,534.35-1,581.29-1,629.67-1,679.52
Capital Expenditure (%)
Free Cash Flow 5,9006,8983,8924,1104,1765,237.375,397.585,562.705,732.875,908.25

Weighted Average Cost Of Capital

Share price $ 40.07
Beta 0.591
Diluted Shares Outstanding 866.40
Cost of Debt
Tax Rate -27.42
After-tax Cost of Debt 2.71%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.677
Total Debt 33,393
Total Equity 34,716.65
Total Capital 68,109.65
Debt Weighting 49.03
Equity Weighting 50.97
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 118,214131,537136,866139,537132,509136,562.60140,740.21145,045.61149,482.72154,055.57
Operating Cash Flow 7,2518,2655,5945,4845,5556,726.186,931.947,143.997,362.547,587.76
Capital Expenditure -1,351-1,367-1,702-1,374-1,379-1,488.81-1,534.35-1,581.29-1,629.67-1,679.52
Free Cash Flow 5,9006,8983,8924,1104,1765,237.375,397.585,562.705,732.875,908.25
WACC
PV LFCF 5,025.304,969.324,913.974,859.234,805.11
SUM PV LFCF 24,572.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.22
Free cash flow (t + 1) 6,026.41
Terminal Value 271,459.91
Present Value of Terminal Value 220,775.24

Intrinsic Value

Enterprise Value 245,348.17
Net Debt 32,200
Equity Value 213,148.17
Shares Outstanding 866.40
Equity Value Per Share 246.02