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
Stock DCF: 226.92 | 31.42 | undervalue

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 131,537136,866139,537132,509132,703133,072.12133,442.27133,813.45134,185.66134,558.90
Revenue (%)
Operating Cash Flow 8,2655,5945,4845,5553,8995,703.755,719.625,735.535,751.485,767.48
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 6,8983,8924,1104,1762,1654,209.394,221.104,232.844,244.624,256.42

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 131,537136,866139,537132,509132,703133,072.12133,442.27133,813.45134,185.66134,558.90
Operating Cash Flow 8,2655,5945,4845,5553,8995,703.755,719.625,735.535,751.485,767.48
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 6,8983,8924,1104,1762,1654,209.394,221.104,232.844,244.624,256.42
WACC
PV LFCF 3,382.953,271.013,162.773,058.112,956.91
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