Discounted Cash Flow (DCF) Analysis Levered

Walgreens Boots Alliance, Inc. (WBA)

$41.52

-0.63 (-1.49%)
All numbers are in Millions, Currency in USD
Stock DCF: 269.55 | 41.52 | 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 $ 41.52
Beta 0.543
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 5.297
Total Debt 33,393
Total Equity 35,972.93
Total Capital 69,365.93
Debt Weighting 48.14
Equity Weighting 51.86
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 4,837.594,791.524,745.894,700.694,655.93
SUM PV LFCF 24,692.74

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.05
Free cash flow (t + 1) 6,026.41
Terminal Value 293,971.23
Present Value of Terminal Value 241,042.93

Intrinsic Value

Enterprise Value 265,735.67
Net Debt 32,200
Equity Value 233,535.67
Shares Outstanding 866.40
Equity Value Per Share 269.55