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Walgreens Boots Alliance Inc (WBA) Stock: How Does it Score on Valuation Metrics?

Friday, February 23, 2024 03:19 PM | InvestorsObserver Analysts

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Walgreens Boots Alliance Inc (WBA) Stock: How Does it Score on Valuation Metrics?

InvestorsObserver gives Walgreens Boots Alliance Inc (WBA) a strong valuation score of 77 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. WBA currently holds a better value than 77% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 77
WBA gets a 77 Valuation Rank today. Find out what this means to you and get the rest of the rankings on WBA!

Metrics Analysis

WBA has a trailing twelve month Price to Earnings (PE) ratio of 33.34 which places it above the histroical average of roughly 15. WBA is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. WBA's trailing-12-month earnings per share (EPS) of 0.66 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
WBA has a 12 month forward PE to Growth (PEG) ratio of 1.38. Markets are overvaluing WBA in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 0.66's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

All together these valuation metrics paint a pretty poor picture for WBA at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for WBA are worse than the average of the market resulting in a valuation score of 77. Click Here to get the full Report on Walgreens Boots Alliance Inc (WBA) stock.

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