Price to Earnings (P/E)
since 2005
Calculation
Walgreens Boots Alliance Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings attributable to Walgreens Boots Alliance, Inc.1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Oct 28, 2019 | 12.51 | = | 55.80 | ÷ | 4.46 | 4.46 | = | 3,982 | ÷ | 892,541,146 | |
| Oct 11, 2018 | 13.39 | = | 70.90 | ÷ | 5.29 | 5.29 | = | 5,024 | ÷ | 949,164,514 | |
| Oct 25, 2017 | 17.17 | = | 69.36 | ÷ | 4.04 | 4.04 | = | 4,078 | ÷ | 1,009,549,218 | |
| Oct 20, 2016 | 21.03 | = | 81.02 | ÷ | 3.85 | 3.85 | = | 4,173 | ÷ | 1,083,282,661 | |
| Oct 28, 2015 | 21.92 | = | 84.95 | ÷ | 3.88 | 3.88 | = | 4,220 | ÷ | 1,088,793,571 | |
| Oct 20, 2014 | 29.61 | = | 60.20 | ÷ | 2.03 | 2.03 | = | 1,932 | ÷ | 950,386,889 | |
| Oct 21, 2013 | 22.56 | = | 58.38 | ÷ | 2.59 | 2.59 | = | 2,450 | ÷ | 946,595,578 | |
| Oct 19, 2012 | 15.89 | = | 35.79 | ÷ | 2.25 | 2.25 | = | 2,127 | ÷ | 944,055,334 | |
| Oct 25, 2011 | 11.08 | = | 33.82 | ÷ | 3.05 | 3.05 | = | 2,714 | ÷ | 889,294,130 | |
| Oct 26, 2010 | 15.18 | = | 34.14 | ÷ | 2.25 | 2.25 | = | 2,091 | ÷ | 929,744,049 | |
| Oct 26, 2009 | 19.18 | = | 38.90 | ÷ | 2.03 | 2.03 | = | 2,006 | ÷ | 988,826,319 | |
| Oct 30, 2008 | 11.56 | = | 25.20 | ÷ | 2.18 | 2.18 | = | 2,157 | ÷ | 989,364,303 | |
| Oct 26, 2007 | 19.52 | = | 40.18 | ÷ | 2.06 | 2.06 | = | 2,041 | ÷ | 991,615,851 | |
| Nov 7, 2006 | 25.00 | = | 43.61 | ÷ | 1.74 | 1.74 | = | 1,751 | ÷ | 1,003,442,336 | |
| Nov 4, 2005 | 29.91 | = | 46.09 | ÷ | 1.54 | 1.54 | = | 1,560 | ÷ | 1,012,080,363 |
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), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Walgreens Boots Alliance Inc. Annual Report.
The price-to-earnings (P/E) ratio exhibits significant volatility and a general long-term trend toward compression between 2005 and 2019. While the share price and earnings per share (EPS) fluctuated independently, the resulting valuation multiples reflect shifting market sentiment and varying growth expectations over the observed period.
- Valuation Contraction (2005–2008)
- A sharp decline in the P/E ratio is observed from 29.91 in 2005 to a low of 11.56 in 2008. This compression occurred despite a steady increase in earnings per share, which rose from 1.54 to 2.18. The contraction was primarily driven by a substantial decrease in share price, which fell from 46.09 to 25.20, indicating a period of significant market devaluation regardless of improving fundamental earnings.
- Recovery and Peak Valuation (2009–2014)
- Following the 2008 low, the P/E ratio entered a period of recovery and expansion, peaking at 29.61 in 2014. This phase was characterized by a strong rally in share price, which climbed from 38.90 in 2009 to 60.20 in 2014. During this window, the share price growth significantly outpaced the growth in earnings per share, leading to a return to high valuation multiples similar to those seen in 2005.
- Earnings Growth and Multiple Compression (2015–2019)
- The final period is marked by a divergence between earnings performance and market valuation. Earnings per share reached a peak of 5.29 in 2018, yet the P/E ratio declined consistently from 21.92 in 2015 to 12.51 in 2019. This indicates that while the company achieved its highest earnings levels during this timeframe, the market was unwilling to sustain a high multiple, resulting in a steady erosion of the valuation ratio.
- Overall Correlation Analysis
- The relationship between share price and EPS remained inconsistent. In the early and late stages of the analysis, earnings growth did not prevent P/E compression. The highest valuations were not associated with the highest earnings, but rather with specific windows of share price appreciation that exceeded earnings growth, most notably leading up to 2014.
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Comparison to Competitors
Walgreens Boots Alliance Inc., P/E, long-term trends, comparison to competitors
| Walgreens Boots Alliance Inc. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Oct 28, 2019 | 12.51 | 35.76 | 13.56 | 41.79 |
| Oct 11, 2018 | 13.39 | 30.51 | 12.97 | 26.62 |
| Oct 25, 2017 | 17.17 | 25.70 | 11.11 | 16.03 |
| Oct 20, 2016 | 21.03 | 27.99 | 14.61 | 14.72 |
| Oct 28, 2015 | 21.92 | 27.57 | — | 15.91 |
| Oct 20, 2014 | 29.61 | 26.44 | 19.07 | 15.34 |
| Oct 21, 2013 | 22.56 | 25.15 | 14.65 | 14.48 |
| Oct 19, 2012 | 15.89 | 23.98 | 13.41 | 13.25 |
| Oct 25, 2011 | 11.08 | 24.24 | 12.23 | 11.15 |
| Oct 26, 2010 | 15.18 | 20.97 | 15.77 | 14.66 |
| Oct 26, 2009 | 19.18 | 23.48 | 10.19 | 15.44 |
| Oct 30, 2008 | 11.56 | 19.45 | 14.43 | 16.36 |
| Oct 26, 2007 | 19.52 | 25.99 | 18.35 | 17.36 |
| Nov 7, 2006 | 25.00 | 22.18 | 18.67 | 17.83 |
| Nov 4, 2005 | 29.91 | 22.23 | 13.78 | 20.66 |
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), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Sector (Consumer Staples Distribution & Retail)
Walgreens Boots Alliance Inc., P/E, long-term trends, comparison to sector (consumer staples distribution & retail)
| Walgreens Boots Alliance Inc. | Consumer Staples Distribution & Retail | |
|---|---|---|
| Oct 28, 2019 | 12.51 | 33.88 |
| Oct 11, 2018 | 13.39 | 24.87 |
| Oct 25, 2017 | 17.17 | 16.68 |
| Oct 20, 2016 | 21.03 | 16.23 |
| Oct 28, 2015 | 21.92 | 22.02 |
| Oct 20, 2014 | 29.61 | 16.85 |
| Oct 21, 2013 | 22.56 | 15.49 |
| Oct 19, 2012 | 15.89 | 14.17 |
| Oct 25, 2011 | 11.08 | 12.22 |
| Oct 26, 2010 | 15.18 | 15.27 |
| Oct 26, 2009 | 19.18 | 15.26 |
| Oct 30, 2008 | 11.56 | 16.27 |
| Oct 26, 2007 | 19.52 | 18.16 |
| Nov 7, 2006 | 25.00 | 18.30 |
| Nov 4, 2005 | 29.91 | 19.26 |
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), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Industry (Consumer Staples)
Walgreens Boots Alliance Inc., P/E, long-term trends, comparison to industry (consumer staples)
| Walgreens Boots Alliance Inc. | Consumer Staples | |
|---|---|---|
| Oct 28, 2019 | 12.51 | 31.92 |
| Oct 11, 2018 | 13.39 | 20.62 |
| Oct 25, 2017 | 17.17 | 22.78 |
| Oct 20, 2016 | 21.03 | 21.50 |
| Oct 28, 2015 | 21.92 | 21.97 |
| Oct 20, 2014 | 29.61 | 19.71 |
| Oct 21, 2013 | 22.56 | 17.00 |
| Oct 19, 2012 | 15.89 | 16.60 |
| Oct 25, 2011 | 11.08 | 14.81 |
| Oct 26, 2010 | 15.18 | 14.32 |
| Oct 26, 2009 | 19.18 | 14.63 |
| Oct 30, 2008 | 11.56 | 15.52 |
| Oct 26, 2007 | 19.52 | 19.68 |
| Nov 7, 2006 | 25.00 | 19.79 |
| Nov 4, 2005 | 29.91 | 20.04 |
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), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).