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
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 | 118,214 | 131,537 | 136,866 | 139,537 | 132,509 | 136,562.60 | 140,740.21 | 145,045.61 | 149,482.72 | 154,055.57 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 7,251 | 8,265 | 5,594 | 5,484 | 5,555 | 6,726.18 | 6,931.94 | 7,143.99 | 7,362.54 | 7,587.76 |
| 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 | 5,900 | 6,898 | 3,892 | 4,110 | 4,176 | 5,237.37 | 5,397.58 | 5,562.70 | 5,732.87 | 5,908.25 |
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 | 118,214 | 131,537 | 136,866 | 139,537 | 132,509 | 136,562.60 | 140,740.21 | 145,045.61 | 149,482.72 | 154,055.57 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 7,251 | 8,265 | 5,594 | 5,484 | 5,555 | 6,726.18 | 6,931.94 | 7,143.99 | 7,362.54 | 7,587.76 |
| 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 | 5,900 | 6,898 | 3,892 | 4,110 | 4,176 | 5,237.37 | 5,397.58 | 5,562.70 | 5,732.87 | 5,908.25 |
| WACC | ||||||||||
| PV LFCF | 5,025.30 | 4,969.32 | 4,913.97 | 4,859.23 | 4,805.11 | |||||
| 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 |