Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Walgreens Boots Alliance Inc., current price multiples
| Walgreens Boots Alliance Inc. | Costco Wholesale Corp. | Dollar General Corp. | Target Corp. | Walmart Inc. | Consumer Staples Distribution & Retail | Consumer Staples | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $39.01 | |||||||||
| No. shares of common stock outstanding | 866,534,089 | |||||||||
| Growth rate (g) | 9.31% | |||||||||
| Earnings per share (EPS) | $4.60 | |||||||||
| Next year expected EPS | $5.02 | |||||||||
| Operating profit per share | $5.77 | |||||||||
| Sales per share | $157.95 | |||||||||
| Book value per share (BVPS) | $27.13 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 8.49 | 53.29 | 10.85 | 16.70 | 42.73 | 76.91 | 57.46 | |||
| Price to next year expected earnings | 7.77 | 47.98 | 8.51 | 14.34 | 39.24 | 72.74 | 57.77 | |||
| Price-earnings-growth (PEG) | 0.91 | 4.82 | 0.39 | 1.02 | 4.80 | 13.42 | — | |||
| Price to operating profit (P/OP) | 6.76 | 42.28 | 7.37 | 12.11 | 24.54 | 34.70 | 29.31 | |||
| Price to sales (P/S) | 0.25 | 1.57 | 0.47 | 0.65 | 1.03 | 1.50 | 2.37 | |||
| Price to book value (P/BV) | 1.44 | 16.62 | 2.67 | 5.14 | 7.90 | 10.83 | 12.89 | |||
Based on: 10-K (reporting date: 2019-08-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Walgreens Boots Alliance Inc., historical price multiples
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).
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Walgreens Boots Alliance Inc. P/E ratio decreased from 2017 to 2018 and from 2018 to 2019. |
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Walgreens Boots Alliance Inc. P/OP ratio decreased from 2017 to 2018 and from 2018 to 2019. |
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Walgreens Boots Alliance Inc. P/S ratio decreased from 2017 to 2018 and from 2018 to 2019. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Walgreens Boots Alliance Inc. P/BV ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019. |
Price to Earnings (P/E)
Walgreens Boots Alliance Inc., historical P/E 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$) | |||||||
| Net earnings attributable to Walgreens Boots Alliance, Inc. (in millions) | 3,982) | 5,024) | 4,078) | 4,173) | 4,220) | 1,932) | |
| Earnings per share (EPS)2 | 4.46 | 5.29 | 4.04 | 3.85 | 3.88 | 2.03 | |
| Share price1, 3 | 55.80 | 70.90 | 69.36 | 81.02 | 84.95 | 60.20 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 12.51 | 13.39 | 17.17 | 21.03 | 21.92 | 29.61 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Costco Wholesale Corp. | 35.76 | — | — | — | — | — | |
| Dollar General Corp. | 19.18 | — | — | — | — | — | |
| Target Corp. | 13.56 | — | — | — | — | — | |
| Walmart Inc. | 41.79 | — | — | — | — | — | |
| P/E Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 32.31 | — | — | — | — | — | |
| P/E Ratio, Industry | |||||||
| Consumer Staples | 35.36 | — | — | — | — | — | |
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 2019 Calculation
EPS = Net earnings attributable to Walgreens Boots Alliance, Inc. ÷ No. shares of common stock outstanding
= 3,982,000,000 ÷ 892,541,146 = 4.46
3 Closing price as at the filing date of Walgreens Boots Alliance Inc. Annual Report.
4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 55.80 ÷ 4.46 = 12.51
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Walgreens Boots Alliance Inc. P/E ratio decreased from 2017 to 2018 and from 2018 to 2019. |
Price to Operating Profit (P/OP)
Walgreens Boots Alliance Inc., historical P/OP 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$) | |||||||
| Operating income (in millions) | 4,998) | 6,414) | 5,557) | 6,001) | 4,668) | 4,194) | |
| Operating profit per share2 | 5.60 | 6.76 | 5.50 | 5.54 | 4.29 | 4.41 | |
| Share price1, 3 | 55.80 | 70.90 | 69.36 | 81.02 | 84.95 | 60.20 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 9.96 | 10.49 | 12.60 | 14.63 | 19.81 | 13.64 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Costco Wholesale Corp. | 27.62 | — | — | — | — | — | |
| Dollar General Corp. | 14.41 | — | — | — | — | — | |
| Target Corp. | 9.69 | — | — | — | — | — | |
| Walmart Inc. | 12.70 | — | — | — | — | — | |
| P/OP Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 14.58 | — | — | — | — | — | |
| P/OP Ratio, Industry | |||||||
| Consumer Staples | 18.03 | — | — | — | — | — | |
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 2019 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 4,998,000,000 ÷ 892,541,146 = 5.60
3 Closing price as at the filing date of Walgreens Boots Alliance Inc. Annual Report.
4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 55.80 ÷ 5.60 = 9.96
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Walgreens Boots Alliance Inc. P/OP ratio decreased from 2017 to 2018 and from 2018 to 2019. |
Price to Sales (P/S)
Walgreens Boots Alliance Inc., historical P/S 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$) | |||||||
| Sales (in millions) | 136,866) | 131,537) | 118,214) | 117,351) | 103,444) | 76,392) | |
| Sales per share2 | 153.34 | 138.58 | 117.10 | 108.33 | 95.01 | 80.38 | |
| Share price1, 3 | 55.80 | 70.90 | 69.36 | 81.02 | 84.95 | 60.20 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 0.36 | 0.51 | 0.59 | 0.75 | 0.89 | 0.75 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Costco Wholesale Corp. | 0.88 | — | — | — | — | — | |
| Dollar General Corp. | 1.19 | — | — | — | — | — | |
| Target Corp. | 0.53 | — | — | — | — | — | |
| Walmart Inc. | 0.55 | — | — | — | — | — | |
| P/S Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.63 | — | — | — | — | — | |
| P/S Ratio, Industry | |||||||
| Consumer Staples | 1.46 | — | — | — | — | — | |
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 2019 Calculation
Sales per share = Sales ÷ No. shares of common stock outstanding
= 136,866,000,000 ÷ 892,541,146 = 153.34
3 Closing price as at the filing date of Walgreens Boots Alliance Inc. Annual Report.
4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 55.80 ÷ 153.34 = 0.36
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Walgreens Boots Alliance Inc. P/S ratio decreased from 2017 to 2018 and from 2018 to 2019. |
Price to Book Value (P/BV)
Walgreens Boots Alliance Inc., historical P/BV 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$) | |||||||
| Total Walgreens Boots Alliance, Inc. shareholders’ equity (in millions) | 23,512) | 26,007) | 27,466) | 29,880) | 30,861) | 20,457) | |
| Book value per share (BVPS)2 | 26.34 | 27.40 | 27.21 | 27.58 | 28.34 | 21.52 | |
| Share price1, 3 | 55.80 | 70.90 | 69.36 | 81.02 | 84.95 | 60.20 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 2.12 | 2.59 | 2.55 | 2.94 | 3.00 | 2.80 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Costco Wholesale Corp. | 8.58 | — | — | — | — | — | |
| Dollar General Corp. | 4.75 | — | — | — | — | — | |
| Target Corp. | 3.52 | — | — | — | — | — | |
| Walmart Inc. | 3.85 | — | — | — | — | — | |
| P/BV Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 4.55 | — | — | — | — | — | |
| P/BV Ratio, Industry | |||||||
| Consumer Staples | 7.93 | — | — | — | — | — | |
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 2019 Calculation
BVPS = Total Walgreens Boots Alliance, Inc. shareholders’ equity ÷ No. shares of common stock outstanding
= 23,512,000,000 ÷ 892,541,146 = 26.34
3 Closing price as at the filing date of Walgreens Boots Alliance Inc. Annual Report.
4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 55.80 ÷ 26.34 = 2.12
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Walgreens Boots Alliance Inc. P/BV ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019. |