Loading...

Discounted Cash Flow (DCF) Analysis Unlevered


Walgreens Boots Alliance Inc.

Walgreens Boots Alliance Inc. (WBA)

Healthcare

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 72,217.0076,391.14103,441.25117,343.75118,212.09131,534.60136,861.75152,984.06171,005.58191,150.04213,667.52
Revenue (%)
EBITDA 5,495.714,927.237,623.627,486.537,187.308,405.067,308.429,974.5611,149.5612,462.9813,931.12
EBITDA (%)
EBIT 4,210.253,613.305,885.815,773.315,532.336,629.345,269.187,603.318,498.989,500.1610,619.28
EBIT (%)
Depreciation 1,285.461,313.931,737.811,713.221,654.971,775.722,039.242,371.252,650.592,962.833,311.85
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 2,108.742,643.132,999.809,809.943,298.12789.211,026.464,757.805,318.275,944.776,645.06
Total Cash (%)
Account Receivables 2,628.703,216.076,847.816,254.426,525.316,576.737,226.307,786.898,704.189,729.5410,875.68
Account Receivables (%)
Inventories 6,853.396,073.108,678.728,953.338,901.379,562.579,333.9712,039.8513,458.1415,043.5116,815.63
Inventories (%)
Accounts Payable 4,636.334,316.1010,085.5210,995.1112,495.0213,561.2214,343.1113,676.7815,287.9017,088.8119,101.88
Accounts Payable (%)
Capital Expenditure -1,213.25-1,107.67-1,251.64-1,325.98-1,347.62-1,367.96-1,697.09-1,942.90-2,171.77-2,427.61-2,713.58
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 57.93
Diluted Shares Outstanding 921.50
Cost of Debt
Tax Rate 12.87
After-tax Cost of Debt -0.59
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.89
Total Debt 11,098.00
Total Equity 53,382.50
Total Capital 64,480.50
Debt Weighting 17.21
Equity Weighting 82.79
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 72,217.0076,391.14103,441.25117,343.75118,212.09131,534.60136,861.75152,984.06171,005.58191,150.04213,667.52
EBITDA 5,495.714,927.237,623.627,486.537,187.308,405.067,308.429,974.5611,149.5612,462.9813,931.12
EBIT 4,210.253,613.305,885.815,773.315,532.336,629.345,269.187,603.318,498.989,500.1610,619.28
Tax Rate 37.04%44.13%20.02%19.28%15.71%16.57%12.87%23.66%23.66%23.66%23.66%
EBIAT 2,650.782,018.774,707.754,659.974,663.255,530.694,591.225,804.406,488.167,252.468,106.80
Depreciation 1,285.461,313.931,737.811,713.221,654.971,775.722,039.242,371.252,650.592,962.833,311.85
Accounts Receivable --587.37-3,631.74593.39-270.89-51.42-649.57-560.59-917.30-1,025.35-1,146.14
Inventories -780.30-2,605.62-274.6151.96-661.19228.59-2,705.87-1,418.29-1,585.37-1,772.13
Accounts Payable --320.235,769.42909.591,499.911,066.20781.89-666.341,611.121,800.912,013.06
Capital Expenditure --105.57143.9774.3521.6320.34329.13245.81228.87255.83285.97
UFCF 3,936.253,099.826,121.597,675.907,620.847,680.337,320.504,488.668,643.159,661.3210,799.42
WACC
PV UFCF 3,840.486,840.297,072.507,312.59
SUM PV UFCF 46,668.32

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.11
Free cash flow (t + 1) 11,231.39
Terminal Value 273,269.95
Present Value of Terminal Value 185,038.69

Intrinsic Value

Enterprise Value 231,707.01
Net Debt 10,071.54
Equity Value 221,635.47
Shares Outstanding 921.50
Equity Value Per Share 240.52