Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
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).
Historical Valuation Ratios (Summary)
Walgreens Boots Alliance Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-K (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-K (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio exhibits a general downward trend from late 2014 through mid-2020. Starting at 29.61 in November 2014, it decreased consistently to a low of 9.86 by February 2019. Thereafter, minor fluctuations occurred, with a slight increase by May 2020 to 44.42, which represents a significant spike relative to preceding periods. This indicates that the market's valuation relative to earnings decreased steadily over most of the observed timeframe, followed by notable volatility towards the end.
- Price to Operating Profit (P/OP) Ratio
- The Price to Operating Profit ratio follows a broadly similar pattern to the P/E ratio, with comparatively higher values earlier on and a decline over time. Beginning at 13.64 in November 2014, the ratio rose briefly, peaking near 22.83 in May 2015, before gradually declining to a low around 8.4 in February 2019. A slight rebound ensued, with a ratio of 21.95 by May 2020. This pattern suggests fluctuating investor perceptions of operating profit relative to price, with a general decrease over the years and increased variability towards the end of the period.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio shows a less volatile but steady declining trend. It starts around 0.75 in November 2014, rises to a high of 1.19 by May 2015, then declines consistently to approximately 0.25 by May 2020. This continuous decrease indicates a reduction in market valuation relative to sales over the examined periods, pointing to possibly lower investor confidence or sales growth not matching market valuation increases.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio fluctuates within a range from approximately 1.49 to 3.48. It begins at 2.73 in November 2013, peaks around 3.48 in November 2014, then gradually decreases to about 1.49 by February 2020. This decline indicates decreasing market valuation relative to the company's book value, potentially reflecting lower expectations regarding net asset value or profitability enhancement over time.
Price to Earnings (P/E)
Walgreens Boots Alliance Inc., historical P/E calculation (quarterly data)
| May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | Nov 30, 2018 | Aug 31, 2018 | May 31, 2018 | Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 866,534,089 | 877,220,195 | 885,861,624 | 892,541,146 | 903,143,463 | 914,298,978 | 943,444,736 | 949,164,514 | 992,411,822 | 991,665,577 | 990,668,837 | 1,009,549,218 | 1,070,096,486 | 1,080,950,894 | 1,079,409,628 | 1,083,282,661 | 1,082,317,487 | 1,080,245,720 | 1,078,746,871 | 1,088,793,571 | 1,092,282,712 | 1,090,756,509 | 945,642,298 | 950,386,889 | 956,560,612 | 954,331,100 | 950,171,285 | ||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||||||||
| Net earnings (loss) attributable to Walgreens Boots Alliance, Inc. (in millions) | (1,708) | 946) | 845) | 678) | 1,025) | 1,156) | 1,123) | 1,512) | 1,342) | 1,349) | 821) | 802) | 1,162) | 1,060) | 1,054) | 1,030) | 1,103) | 930) | 1,110) | 26) | 1,302) | 2,042) | 850) | (239) | 722) | 754) | 695) | ||||||||
| Earnings per share (EPS)2 | 0.88 | 3.98 | 4.18 | 4.46 | 5.33 | 5.61 | 5.65 | 5.29 | 4.35 | 4.17 | 3.88 | 4.04 | 4.02 | 3.93 | 3.81 | 3.85 | 2.93 | 3.12 | 4.15 | 3.88 | 3.62 | 3.09 | 2.21 | 2.03 | 0.00 | 0.00 | 0.00 | ||||||||
| Share price1, 3 | 39.01 | 40.32 | 55.83 | 55.80 | 54.52 | 55.36 | 69.61 | 70.90 | 59.70 | 67.59 | 71.60 | 69.36 | 78.37 | 81.17 | 83.03 | 81.02 | 81.55 | 83.36 | 81.17 | 84.95 | 89.55 | 92.62 | 76.05 | 60.20 | 73.78 | 64.35 | 57.43 | ||||||||
| Valuation Ratio | |||||||||||||||||||||||||||||||||||
| P/E ratio4 | 44.42 | 10.12 | 13.35 | 12.51 | 10.22 | 9.86 | 12.33 | 13.39 | 13.73 | 16.21 | 18.45 | 17.17 | 19.48 | 20.66 | 21.77 | 21.03 | 27.85 | 26.74 | 19.55 | 21.92 | 24.73 | 29.93 | 34.46 | 29.61 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 36.98 | 32.71 | 34.68 | 35.76 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Target Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-K (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-K (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30).
1 Data adjusted for splits and stock dividends.
2 Q3 2020 Calculation
EPS
= (Net earnings (loss) attributable to Walgreens Boots Alliance, Inc.Q3 2020
+ Net earnings (loss) attributable to Walgreens Boots Alliance, Inc.Q2 2020
+ Net earnings (loss) attributable to Walgreens Boots Alliance, Inc.Q1 2020
+ Net earnings (loss) attributable to Walgreens Boots Alliance, Inc.Q4 2019)
÷ No. shares of common stock outstanding
= (-1,708,000,000 + 946,000,000 + 845,000,000 + 678,000,000)
÷ 866,534,089 = 0.88
3 Closing price as at the filing date of Walgreens Boots Alliance Inc. Quarterly or Annual Report.
4 Q3 2020 Calculation
P/E ratio = Share price ÷ EPS
= 39.01 ÷ 0.88 = 44.42
5 Click competitor name to see calculations.
The financial data reveals several key trends in the company's quarterly performance over the given timeframe.
- Share Price
- The share price experienced fluctuations with a general upward trend from late 2013 through early 2015, peaking around February 2015 at $92.62. Subsequently, there was a period of decline and stabilization, with prices averaging in the low 80s through 2016. In late 2017 and throughout 2018, the price decreased further, reaching a low around $55 by late 2019. The lowest point occurred in early 2020, with the price dropping to approximately $39, indicating increased volatility and a significant decline in value during that period.
- Earnings Per Share (EPS)
- EPS data, available from November 2014 onwards, shows an overall upward trajectory until the end of 2018. Starting at $2.03, EPS increased steadily to a high of $5.65 by February 2019. However, after this peak, earnings showed signs of weakening, with a decline to $3.98 by May 2020 and a pronounced drop to $0.88 in late May 2020. This decline in EPS suggests challenges in maintaining profitability during the later period.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio indicated relatively high valuations initially, with a peak above 34 in early 2015. Over the years, the ratio generally trended downward, reaching single digits around early 2019, signifying that the share price growth slowed relative to earnings growth. In early 2020, a notable spike in the P/E ratio to over 44 coincided with the sharp decline in EPS, pointing to increased market uncertainty and possibly inflated valuation metrics relative to diminished earnings.
Overall, the data reflects a company that showed initial growth in share price and earnings through the mid-2010s, followed by a period of instability and decline in market value and profit metrics, especially pronounced in early 2020. The divergence between declining EPS and volatility in the P/E ratio suggests external or internal challenges impacting performance and investor sentiment during the most recent quarters observed.
Price to Operating Profit (P/OP)
Walgreens Boots Alliance Inc., historical P/OP calculation (quarterly data)
| May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | Nov 30, 2018 | Aug 31, 2018 | May 31, 2018 | Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 866,534,089 | 877,220,195 | 885,861,624 | 892,541,146 | 903,143,463 | 914,298,978 | 943,444,736 | 949,164,514 | 992,411,822 | 991,665,577 | 990,668,837 | 1,009,549,218 | 1,070,096,486 | 1,080,950,894 | 1,079,409,628 | 1,083,282,661 | 1,082,317,487 | 1,080,245,720 | 1,078,746,871 | 1,088,793,571 | 1,092,282,712 | 1,090,756,509 | 945,642,298 | 950,386,889 | 956,560,612 | 954,331,100 | 950,171,285 | ||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||||||||
| Operating income (loss) (in millions) | (1,584) | 1,233) | 1,013) | 878) | 1,203) | 1,517) | 1,400) | 1,511) | 1,601) | 1,980) | 1,322) | 1,114) | 1,517) | 1,479) | 1,447) | 1,140) | 1,533) | 1,860) | 1,468) | 836) | 1,401) | 1,377) | 1,054) | 969) | 1,026) | 1,275) | 924) | ||||||||
| Operating profit per share2 | 1.78 | 4.93 | 5.21 | 5.60 | 6.23 | 6.59 | 6.88 | 6.76 | 6.06 | 5.98 | 5.48 | 5.50 | 5.22 | 5.18 | 5.54 | 5.54 | 5.26 | 5.15 | 4.71 | 4.29 | 4.40 | 4.06 | 4.57 | 4.41 | 0.00 | 0.00 | 0.00 | ||||||||
| Share price1, 3 | 39.01 | 40.32 | 55.83 | 55.80 | 54.52 | 55.36 | 69.61 | 70.90 | 59.70 | 67.59 | 71.60 | 69.36 | 78.37 | 81.17 | 83.03 | 81.02 | 81.55 | 83.36 | 81.17 | 84.95 | 89.55 | 92.62 | 76.05 | 60.20 | 73.78 | 64.35 | 57.43 | ||||||||
| Valuation Ratio | |||||||||||||||||||||||||||||||||||
| P/OP ratio4 | 21.95 | 8.17 | 10.73 | 9.96 | 8.74 | 8.40 | 10.12 | 10.49 | 9.85 | 11.30 | 13.06 | 12.60 | 15.02 | 15.67 | 14.99 | 14.63 | 15.49 | 16.18 | 17.23 | 19.81 | 20.37 | 22.83 | 16.63 | 13.64 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 27.61 | 25.16 | 26.72 | 27.62 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Target Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-K (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-K (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30).
1 Data adjusted for splits and stock dividends.
2 Q3 2020 Calculation
Operating profit per share
= (Operating income (loss)Q3 2020
+ Operating income (loss)Q2 2020
+ Operating income (loss)Q1 2020
+ Operating income (loss)Q4 2019)
÷ No. shares of common stock outstanding
= (-1,584,000,000 + 1,233,000,000 + 1,013,000,000 + 878,000,000)
÷ 866,534,089 = 1.78
3 Closing price as at the filing date of Walgreens Boots Alliance Inc. Quarterly or Annual Report.
4 Q3 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 39.01 ÷ 1.78 = 21.95
5 Click competitor name to see calculations.
The share price exhibits a fluctuating trend over the analyzed periods. Initially, it shows an upward movement from US$57.43 to a peak near US$92.62, occurring around early 2015. Following this peak, the share price enters a phase of gradual decline with intermittent minor recoveries, stabilizing around the US$80 range until early 2017. Thereafter, a more pronounced downward trend is observed, with the share price dropping steadily from approximately US$81.17 in late 2016 to below US$40 by mid-2020.
The operating profit per share (OPPS) data, available from late 2014 onwards, demonstrates a generally ascending trajectory through early 2019. Beginning at 4.41 US$, it increases to a high of 6.88 US$, reflecting improving profitability. From that point forward, OPPS declines slightly but remains above 4.9 US$ until a notable drop to 1.78 US$ is observed in the last period of May 2020, signaling a significant decrease in operating profit per share.
The ratio of price to operating profit (P/OP) reveals key valuation dynamics relative to profitability. Early observations show a high starting ratio of 13.64, which escalates to a peak of 22.83 during mid-2015, indicative of rising share prices relative to operating profit. Subsequently, the P/OP ratio declines consistently with some variation, falling to a low near 8.4 around early 2019. Toward the final periods, there is an uptick in the P/OP ratio, reaching 21.95, reflecting a disproportionate decrease in operating profit against share price.
- Summary of trends
- The share price experienced an initial period of growth followed by a sustained decline, particularly sharp in the final intervals.
- Operating profit per share generally improved through early 2019 but experienced a steep decline at the end of the period reviewed.
- The price-to-operating-profit ratio suggests overvaluation risk during mid-2015 and early 2020, while the periods leading up to 2019 indicated a more balanced valuation in relation to profitability.
- The disconnect between share price and operating profit in the latest data point highlights potential market concerns or extraordinary operating challenges during that time.
Price to Sales (P/S)
Walgreens Boots Alliance Inc., historical P/S calculation (quarterly data)
| May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | Nov 30, 2018 | Aug 31, 2018 | May 31, 2018 | Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 866,534,089 | 877,220,195 | 885,861,624 | 892,541,146 | 903,143,463 | 914,298,978 | 943,444,736 | 949,164,514 | 992,411,822 | 991,665,577 | 990,668,837 | 1,009,549,218 | 1,070,096,486 | 1,080,950,894 | 1,079,409,628 | 1,083,282,661 | 1,082,317,487 | 1,080,245,720 | 1,078,746,871 | 1,088,793,571 | 1,092,282,712 | 1,090,756,509 | 945,642,298 | 950,386,889 | 956,560,612 | 954,331,100 | 950,171,285 | ||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||||||||
| Sales (in millions) | 34,631) | 35,820) | 34,339) | 33,954) | 34,591) | 34,528) | 33,793) | 33,442) | 34,334) | 33,021) | 30,740) | 30,149) | 30,118) | 29,446) | 28,501) | 28,636) | 29,498) | 30,184) | 29,033) | 28,522) | 28,795) | 26,573) | 19,554) | 19,057) | 19,401) | 19,605) | 18,329) | ||||||||
| Sales per share2 | 160.11 | 158.12 | 155.12 | 153.34 | 150.98 | 148.85 | 142.66 | 138.58 | 129.22 | 125.07 | 121.59 | 117.10 | 109.06 | 107.39 | 108.22 | 108.33 | 108.32 | 107.88 | 104.68 | 95.01 | 86.04 | 77.55 | 82.08 | 80.38 | 0.00 | 0.00 | 0.00 | ||||||||
| Share price1, 3 | 39.01 | 40.32 | 55.83 | 55.80 | 54.52 | 55.36 | 69.61 | 70.90 | 59.70 | 67.59 | 71.60 | 69.36 | 78.37 | 81.17 | 83.03 | 81.02 | 81.55 | 83.36 | 81.17 | 84.95 | 89.55 | 92.62 | 76.05 | 60.20 | 73.78 | 64.35 | 57.43 | ||||||||
| Valuation Ratio | |||||||||||||||||||||||||||||||||||
| P/S ratio4 | 0.24 | 0.25 | 0.36 | 0.36 | 0.36 | 0.37 | 0.49 | 0.51 | 0.46 | 0.54 | 0.59 | 0.59 | 0.72 | 0.76 | 0.77 | 0.75 | 0.75 | 0.77 | 0.78 | 0.89 | 1.04 | 1.19 | 0.93 | 0.75 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 0.87 | 0.80 | 0.86 | 0.88 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Target Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-K (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-K (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30).
1 Data adjusted for splits and stock dividends.
2 Q3 2020 Calculation
Sales per share
= (SalesQ3 2020
+ SalesQ2 2020
+ SalesQ1 2020
+ SalesQ4 2019)
÷ No. shares of common stock outstanding
= (34,631,000,000 + 35,820,000,000 + 34,339,000,000 + 33,954,000,000)
÷ 866,534,089 = 160.11
3 Closing price as at the filing date of Walgreens Boots Alliance Inc. Quarterly or Annual Report.
4 Q3 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 39.01 ÷ 160.11 = 0.24
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals important trends in share price, sales per share, and the price-to-sales (P/S) ratio over the period from late 2013 through mid-2020.
- Share Price Trends
- The share price exhibited fluctuations with an overall declining pattern in recent years. Initially, the share price ranged from approximately $57 to $93 between late 2013 and early 2015, reaching a peak near $92.62 in February 2015. Thereafter, the share price began to gradually decline and experienced periods of volatility, with values mostly ranging between $55 and $83 from 2015 to late 2018. From late 2018 to mid-2020, a clear downward trend is evident, with the share price dropping steadily from approximately $69 down to about $39 by May 2020.
- Sales per Share
- Sales per share demonstrated a generally consistent upward trajectory over the available periods, showing steady growth. Starting from roughly $80.38 in November 2014, sales per share increased continuously, surpassing $100 by late 2015 and reaching approximately $160 by May 2020. This represents roughly a doubling in sales per share over the span of five and a half years, indicating strong growth in sales performance despite fluctuations in the share price.
- Price-to-Sales (P/S) Ratio Patterns
- The P/S ratio showed a distinct downward trend throughout the periods analyzed. Early observations show the ratio fluctuating between 0.75 and 1.19 during late 2014 through mid-2015, suggesting relatively higher market valuation relative to sales. However, from late 2015 onwards, the P/S ratio steadily declined, reducing from around 0.75 to values as low as 0.24 by May 2020. This decline reflects a reduction in market valuation relative to company sales, potentially indicating a market perception of diminishing growth prospects or increased risk despite the continuous sales growth.
- Overall Observations
- The juxtaposition of increasing sales per share with declining share price and P/S ratio suggests that while the company has successfully expanded its sales, investor confidence or market valuation multiples have decreased. This may reflect broader market conditions, changes in profitability, competitive pressures, or shifts in investor sentiment. The decreasing P/S ratio could imply that the market is assigning less value to each dollar of sales over time, warranting further investigation into profitability margins or future growth expectations.
Price to Book Value (P/BV)
Walgreens Boots Alliance Inc., historical P/BV calculation (quarterly data)
| May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | Nov 30, 2018 | Aug 31, 2018 | May 31, 2018 | Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 866,534,089 | 877,220,195 | 885,861,624 | 892,541,146 | 903,143,463 | 914,298,978 | 943,444,736 | 949,164,514 | 992,411,822 | 991,665,577 | 990,668,837 | 1,009,549,218 | 1,070,096,486 | 1,080,950,894 | 1,079,409,628 | 1,083,282,661 | 1,082,317,487 | 1,080,245,720 | 1,078,746,871 | 1,088,793,571 | 1,092,282,712 | 1,090,756,509 | 945,642,298 | 950,386,889 | 956,560,612 | 954,331,100 | 950,171,285 | ||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||||||||
| Total Walgreens Boots Alliance, Inc. shareholders’ equity (in millions) | 20,736) | 23,720) | 23,661) | 23,512) | 24,133) | 24,770) | 25,609) | 26,007) | 27,736) | 27,355) | 25,929) | 27,466) | 30,600) | 30,067) | 29,325) | 29,880) | 30,881) | 29,506) | 30,709) | 30,861) | 31,563) | 30,814) | 20,636) | 20,457) | 21,417) | 20,784) | 20,021) | ||||||||
| Book value per share (BVPS)2 | 23.93 | 27.04 | 26.71 | 26.34 | 26.72 | 27.09 | 27.14 | 27.40 | 27.95 | 27.58 | 26.17 | 27.21 | 28.60 | 27.82 | 27.17 | 27.58 | 28.53 | 27.31 | 28.47 | 28.34 | 28.90 | 28.25 | 21.82 | 21.52 | 22.39 | 21.78 | 21.07 | ||||||||
| Share price1, 3 | 39.01 | 40.32 | 55.83 | 55.80 | 54.52 | 55.36 | 69.61 | 70.90 | 59.70 | 67.59 | 71.60 | 69.36 | 78.37 | 81.17 | 83.03 | 81.02 | 81.55 | 83.36 | 81.17 | 84.95 | 89.55 | 92.62 | 76.05 | 60.20 | 73.78 | 64.35 | 57.43 | ||||||||
| Valuation Ratio | |||||||||||||||||||||||||||||||||||
| P/BV ratio4 | 1.63 | 1.49 | 2.09 | 2.12 | 2.04 | 2.04 | 2.56 | 2.59 | 2.14 | 2.45 | 2.74 | 2.55 | 2.74 | 2.92 | 3.06 | 2.94 | 2.86 | 3.05 | 2.85 | 3.00 | 3.10 | 3.28 | 3.48 | 2.80 | 3.30 | 2.95 | 2.73 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 8.17 | 7.44 | 8.17 | 8.58 | 7.63 | 7.50 | 6.59 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Target Corp. | 5.53 | 4.62 | 3.71 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | 4.70 | 4.64 | 4.44 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-K (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-K (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30).
1 Data adjusted for splits and stock dividends.
2 Q3 2020 Calculation
BVPS = Total Walgreens Boots Alliance, Inc. shareholders’ equity ÷ No. shares of common stock outstanding
= 20,736,000,000 ÷ 866,534,089 = 23.93
3 Closing price as at the filing date of Walgreens Boots Alliance Inc. Quarterly or Annual Report.
4 Q3 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 39.01 ÷ 23.93 = 1.63
5 Click competitor name to see calculations.
The data exhibits notable fluctuations in share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the period analyzed, reflecting varying investor sentiment and company valuation dynamics.
- Share Price
- The share price demonstrated an upward trend initially, rising from $57.43 in November 2013 to a peak of $92.62 by February 2015. Following this peak, a general decline is observable with some variability, decreasing gradually to $69.36 by August 2017. This downward trajectory continued with sharper declines post-2017, reaching $39.01 by May 2020. The period from November 2018 onwards marks a more pronounced depreciation in share price, indicating possible market challenges or changing investor expectations.
- Book Value per Share (BVPS)
- BVPS showed relative stability with moderate growth initially, increasing from $21.07 in November 2013 to a high of $28.90 by May 2015. Subsequently, BVPS fluctuated slightly around the $27-$28 range until the end of the dataset, with a modest decline observed in the latest period, dropping to $23.93 by May 2020. Overall, book value per share remained quite robust compared to the more volatile share price movements, suggesting consistent underlying asset values despite market fluctuations.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio corresponded with changes in share price relative to BVPS, showing a peak ratio of 3.48 in November 2014, reflective of potentially overvalued shares given the underlying book value. Thereafter, the ratio trended downward, indicating either declining share prices or relatively steady book values. A substantial drop in the ratio became evident from late 2018 onwards, reaching as low as 1.49 by February 2020. This decline in P/BV ratio suggests that the stock became more undervalued relative to its book value during this period, possibly indicating market pessimism or recognition of reduced growth prospects.
In summary, the company experienced strong share price appreciation initially, followed by a prolonged decline in market value particularly after 2017. Book value per share remained comparatively stable with only mild fluctuations, supporting the view of consistent asset backing. The declining P/BV ratio in the latter periods indicates waning investor confidence or market valuation adjustments, with shares trading closer to book value or potentially below intrinsic asset worth by 2020.