Walgreens Boots Alliance Inc., FCFE calculation

US$ in millions

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)
Net (earnings) loss attributable to noncontrolling interests	(20)	7)	23)	18)	59)	99)
Net noncash charges	2,372)	1,293)	1,532)	1,974)	890)	1,652)
Changes in operating assets and liabilities	(740)	1,941)	1,618)	1,682)	495)	210)
Net cash provided by operating activities	5,594)	8,265)	7,251)	7,847)	5,664)	3,893)
Additions to property, plant and equipment	(1,702)	(1,367)	(1,351)	(1,325)	(1,251)	(1,106)
Net change in short-term debt with maturities of 3 months or less	536)	586)	33)	29)	(226)	—)
Proceeds from debt	12,433)	5,900)	—)	5,991)	12,285)	—)
Payments of debt	(10,461)	(4,890)	(6,196)	(791)	(10,472)	(550)
Free cash flow to equity (FCFE)	6,400)	8,494)	(263)	11,751)	6,000)	2,237)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Walgreens Boots Alliance Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Walgreens Boots Alliance Inc. FCFE increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Walgreens Boots Alliance Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	866,534,089
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	6,400)
FCFE per share	7.39
Current share price (P)	39.01
Valuation Ratio
P/FCFE	5.28
Benchmarks
P/FCFE, Competitors¹
Costco Wholesale Corp.	69.45
Dollar General Corp.	24.34
Target Corp.	15.19
Walmart Inc.	42.13
P/FCFE, Sector
Consumer Staples Distribution & Retail	31.96
P/FCFE, Industry
Consumer Staples	29.84

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

¹ Click competitor name to see calculations.

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

Walgreens Boots Alliance Inc., historical P/FCFE calculation, comparison to benchmarks

	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
No. shares of common stock outstanding¹	892,541,146	949,164,514	1,009,549,218	1,083,282,661	1,088,793,571	950,386,889
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	6,400)	8,494)	(263)	11,751)	6,000)	2,237)
FCFE per share³	7.17	8.95	-0.26	10.85	5.51	2.35
Share price^1, 4	55.80	70.90	69.36	81.02	84.95	60.20
Valuation Ratio
P/FCFE⁵	7.78	7.92	—	7.47	15.42	25.58
Benchmarks
P/FCFE, Competitors⁶
Costco Wholesale Corp.	36.68	—	—	—	—	—
Dollar General Corp.	24.07	—	—	—	—	—
Target Corp.	17.63	—	—	—	—	—
Walmart Inc.	9.30	—	—	—	—	—
P/FCFE, Sector
Consumer Staples Distribution & Retail	12.95	—	—	—	—	—
P/FCFE, Industry
Consumer Staples	18.06	—	—	—	—	—

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 Data adjusted for splits and stock dividends.

² See details »

³ 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,400,000,000 ÷ 892,541,146 = 7.17

⁴ Closing price as at the filing date of Walgreens Boots Alliance Inc. Annual Report.

⁵ 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 55.80 ÷ 7.17 = 7.78

⁶ Click competitor name to see calculations.

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Walgreens Boots Alliance Inc. (NASDAQ:WBA)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical