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Is this Large Market Cap Stock target price reasonable for Walgreens Boots Alliance, Inc. (NASDAQ:WBA)?

The company in question is, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) currently with a stock price of 80.1 (-1.51% today). The market cap for Walgreens Boots Alliance, Inc. is 88403.27, and is in the sector Services, and Drug Stores industry. The target price for Walgreens Boots Alliance, Inc. is 92.95. Currently Walgreens Boots Alliance, Inc. is trading with a P/E of 28.03, and a forward P/E of 16.3. Average volume for Walgreens Boots Alliance, Inc. is 4997.9 and so far today it is 4927584.

Performance in the last year for Walgreens Boots Alliance, Inc. has been -12.30%. For EPS growth, Walgreens Boots Alliance, Inc. has seen a growth of 100.00%, and is looking to grow in the next year to 10.67%. More long term stats show that EPS growth has been 13.60% over the last five years and could be 13.30% for the next five years. Walgreens Boots Alliance, Inc. has seen sales growth quarter over quarter at 2.40%, with EPS growth quarter over quarter at -14.20%. The 20-day simple moving average is -0.81%, with the 200-day simple moving average coming to -1.45%.

Since the IPO date for Walgreens Boots Alliance, Inc. on the 7/1/1985, Walgreens Boots Alliance, Inc. has seen performance year to date to be -3.61%. With Walgreens Boots Alliance, Inc. trading at 80.1, the dividend yield is 1.84%, and the EPS is 2.9.

So could Walgreens Boots Alliance, Inc., be undervalued? Well as said before P/E is 28.03. The PEG is 2.11, P/S is 0.75 and the P/B is at 2.85. The P/cash is 26.86, with P/free cash flow at 22.76.

Walgreens Boots Alliance, Inc. ability to deal with debt shows that the current ratio is 1.2, and the quick ratio is 0.7. This is with long term debt/equity at 0.43, and total debt/equity at 0.44.

In terms of margins, Walgreens Boots Alliance, Inc. has a gross margin of 25.80%, an operating margin of 4.90% and a profit margin of 2.70%.Payout ratio for Walgreens Boots Alliance, Inc. is 49.20%. Return on assets come to 4.70% with return on investment coming to 8.00%.

Insider ownership for Walgreens Boots Alliance, Inc., is at 12.92% and institutional ownership comes to 61.30%. Outstanding shares are at 1086.97. While shares float is 937.65. The float short is currently 1.15%, and short ratio is 2.16.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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