Stock Analysis on Net

Walgreens Boots Alliance Inc. (NASDAQ:WBA)

This company has been moved to the archive! The financial data has not been updated since July 9, 2020.

Enterprise Value to EBITDA (EV/EBITDA)

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Walgreens Boots Alliance Inc., EBITDA calculation

US$ in millions

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12 months ended: Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Net earnings attributable to Walgreens Boots Alliance, Inc. 3,982 5,024 4,078 4,173 4,220 1,932
Add: Net income attributable to noncontrolling interest (20) 7 23 18 59 99
Add: Income tax expense 588 998 760 997 1,056 1,526
Earnings before tax (EBT) 4,550 6,029 4,861 5,188 5,335 3,557
Add: Interest expense, net 704 616 693 596 605 156
Earnings before interest and tax (EBIT) 5,254 6,645 5,554 5,784 5,940 3,713
Add: Depreciation and amortization 2,038 1,770 1,654 1,718 1,742 1,316
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,292 8,415 7,208 7,502 7,682 5,029

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Walgreens Boots Alliance Inc. EBITDA increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Enterprise Value to EBITDA Ratio, Current

Walgreens Boots Alliance Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 50,256
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,292
Valuation Ratio
EV/EBITDA 6.89
Benchmarks
EV/EBITDA, Competitors1
Costco Wholesale Corp. 32.01
Dollar General Corp. 7.43
Target Corp. 9.46
Walmart Inc. 19.41
EV/EBITDA, Sector
Consumer Staples Distribution & Retail 30.21
EV/EBITDA, Industry
Consumer Staples 28.31

Based on: 10-K (reporting date: 2019-08-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Walgreens Boots Alliance Inc., historical EV/EBITDA calculation, comparison to benchmarks

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Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 66,257 81,590 80,464 97,390 104,315 59,181
Earnings before interest, tax, depreciation and amortization (EBITDA)2 7,292 8,415 7,208 7,502 7,682 5,029
Valuation Ratio
EV/EBITDA3 9.09 9.70 11.16 12.98 13.58 11.77
Benchmarks
EV/EBITDA, Competitors4
Costco Wholesale Corp. 20.13
Dollar General Corp. 12.89
Target Corp. 7.49
Walmart Inc. 13.73
EV/EBITDA, Sector
Consumer Staples Distribution & Retail 13.67
EV/EBITDA, Industry
Consumer Staples 18.29

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 66,257 ÷ 7,292 = 9.09

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Walgreens Boots Alliance Inc. EV/EBITDA ratio decreased from 2017 to 2018 and from 2018 to 2019.