Is Walgreens Boots Alliance Inc (WBA) Stock Price Below Fair Value?

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Investors Observer gives Walgreens Boots Alliance Inc (WBA) a solid review score of 78 based on its analysis. The proprietary rating system takes into account the underlying health of a company by analyzing its stock price, earnings and rate of growth. WBA currently holds better value than 78% of the shares based on these metrics. Long-term buy and hold investors should find the most relevant valuation ranking system when making investment decisions.

WBA gets an evaluation ranking of 78 today. Find out what this means to you and get the rest of the rankings on WBA!

Metrics analysis

WBA has a 12-month price-to-earnings (PE) ratio of 17.8 which puts it around the all-time average of around 15. WBA is currently trading at an average value due to investors paying around this. that the action is worth in relation to its profits. WBA’s last 12-month earnings per share (EPS) of 2.64 justifies its stock price in the market. The tracking PE ratios do not take into account the company’s projected growth rate. So some companies will have high PE ratios due to high growth recruiting more investors even though the underlying company has produced low profits so far. WBA has a 12-month forward PEG to Growth Ratio of 1.45. Markets are overstating WBA relative to its projected growth, as its PEG ratio is currently above fair market value of 1. The PEG of 2.6400001 comes from the fact that its forward price / earnings ratio is divided by its growth rate. PEG ratios are one of the most used valuation metrics due to the incorporation of more fundamental business metrics and the focus on the future of the business rather than its past.

Summary

WBA ‘has a low valuation at its current price due to an overvalued PEG ratio despite strong growth. WBA’s PE and PEG are below the market average, resulting in a below-average valuation score. Click here for the full Walgreens Boots Alliance Inc (WBA) Stock Report.


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