Walgreens Boots Alliance Inc. (NASDAQ:WBA)

The annual financial data reveals distinct trends in share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio over the 15-year period observed.

Share Price

The share price experienced notable fluctuations throughout the period. Initially, it started at $46.09 and declined steadily to reach a low of $25.20 in 2008, coinciding with the global financial crisis period. Following this low point, there was a recovery phase, peaking at $84.95 in 2015, which represents the highest level in the data set. Subsequent years saw a gradual decline in share price, falling to $55.80 by 2019. Overall, the share price demonstrated sensitivity to economic cycles with a recovery phase succeeding the 2008 crisis peak and a moderate downtrend in the latter years.

Earnings Per Share (EPS)

EPS showed an upward trajectory with some variability. It increased from $1.54 in 2005 to a peak of $3.88 in 2015. Thereafter, EPS remained relatively strong, peaking further to $5.29 in 2018 before slightly declining to $4.46 in 2019. This pattern indicates general earnings growth over time despite short-term fluctuations. The steady increase in EPS over most years suggests improved profitability and operational performance.

Price-to-Earnings (P/E) Ratio

The P/E ratio exhibited an overall decreasing trend from 2005 to 2019. Starting at 29.91 in 2005, the ratio dropped significantly to 11.56 during 2008, reflecting potentially undervalued share prices or market pessimism during the financial crisis. After 2008, the P/E fluctuated between approximately 12 and 29, peaking at 29.61 in 2014 before declining steadily to 12.51 in 2019. The reduction in the P/E ratio over time may indicate increasing earnings relative to share price or a market adjustment toward lower valuation multiples, possibly reflecting more conservative investor sentiment.

In summary, the data reveals that earnings per share increased substantially over the period, reflecting better profitability. Meanwhile, share prices, though volatile, showed recovery after the financial crisis but declined in recent years. The decreasing P/E ratio trend suggests the market valued the shares more conservatively or that earnings growth outpaced share price appreciation in the latter years.