Discounted Cash Flow (DCF) Analysis Levered
Walgreens Boots Alliance, Inc. (WBA)
$31.42
-0.43 (-1.35%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 131,537 | 136,866 | 139,537 | 132,509 | 132,703 | 133,072.12 | 133,442.27 | 133,813.45 | 134,185.66 | 134,558.90 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 8,265 | 5,594 | 5,484 | 5,555 | 3,899 | 5,703.75 | 5,719.62 | 5,735.53 | 5,751.48 | 5,767.48 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,367 | -1,702 | -1,374 | -1,379 | -1,734 | -1,494.36 | -1,498.52 | -1,502.68 | -1,506.86 | -1,511.06 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 6,898 | 3,892 | 4,110 | 4,176 | 2,165 | 4,209.39 | 4,221.10 | 4,232.84 | 4,244.62 | 4,256.42 |
Weighted Average Cost Of Capital
| Share price | $ 31.42 |
|---|---|
| Beta | 0.709 |
| Diluted Shares Outstanding | 865.90 |
| Cost of Debt | |
| Tax Rate | 1.09 |
| After-tax Cost of Debt | 1.12% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.093 |
| Total Debt | 35,477 |
| Total Equity | 27,206.58 |
| Total Capital | 62,683.58 |
| Debt Weighting | 56.60 |
| Equity Weighting | 43.40 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 131,537 | 136,866 | 139,537 | 132,509 | 132,703 | 133,072.12 | 133,442.27 | 133,813.45 | 134,185.66 | 134,558.90 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 8,265 | 5,594 | 5,484 | 5,555 | 3,899 | 5,703.75 | 5,719.62 | 5,735.53 | 5,751.48 | 5,767.48 |
| Capital Expenditure | -1,367 | -1,702 | -1,374 | -1,379 | -1,734 | -1,494.36 | -1,498.52 | -1,502.68 | -1,506.86 | -1,511.06 |
| Free Cash Flow | 6,898 | 3,892 | 4,110 | 4,176 | 2,165 | 4,209.39 | 4,221.10 | 4,232.84 | 4,244.62 | 4,256.42 |
| WACC | ||||||||||
| PV LFCF | 3,382.95 | 3,271.01 | 3,162.77 | 3,058.11 | 2,956.91 | |||||
| SUM PV LFCF | 18,994.68 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 3.71 |
| Free cash flow (t + 1) | 4,341.55 |
| Terminal Value | 253,891.94 |
| Present Value of Terminal Value | 211,614.66 |
Intrinsic Value
| Enterprise Value | 230,609.34 |
|---|---|
| Net Debt | 34,119 |
| Equity Value | 196,490.34 |
| Shares Outstanding | 865.90 |
| Equity Value Per Share | 226.92 |