Price to Sales (P/S)
since 2005
Calculation
Walgreens Boots Alliance Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Sales1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Oct 28, 2019 | 0.36 | = | 55.80 | ÷ | 153.34 | 153.34 | = | 136,866 | ÷ | 892,541,146 | |
| Oct 11, 2018 | 0.51 | = | 70.90 | ÷ | 138.58 | 138.58 | = | 131,537 | ÷ | 949,164,514 | |
| Oct 25, 2017 | 0.59 | = | 69.36 | ÷ | 117.10 | 117.10 | = | 118,214 | ÷ | 1,009,549,218 | |
| Oct 20, 2016 | 0.75 | = | 81.02 | ÷ | 108.33 | 108.33 | = | 117,351 | ÷ | 1,083,282,661 | |
| Oct 28, 2015 | 0.89 | = | 84.95 | ÷ | 95.01 | 95.01 | = | 103,444 | ÷ | 1,088,793,571 | |
| Oct 20, 2014 | 0.75 | = | 60.20 | ÷ | 80.38 | 80.38 | = | 76,392 | ÷ | 950,386,889 | |
| Oct 21, 2013 | 0.77 | = | 58.38 | ÷ | 76.29 | 76.29 | = | 72,217 | ÷ | 946,595,578 | |
| Oct 19, 2012 | 0.47 | = | 35.79 | ÷ | 75.88 | 75.88 | = | 71,633 | ÷ | 944,055,334 | |
| Oct 25, 2011 | 0.42 | = | 33.82 | ÷ | 81.17 | 81.17 | = | 72,184 | ÷ | 889,294,130 | |
| Oct 26, 2010 | 0.47 | = | 34.14 | ÷ | 72.51 | 72.51 | = | 67,420 | ÷ | 929,744,049 | |
| Oct 26, 2009 | 0.61 | = | 38.90 | ÷ | 64.05 | 64.05 | = | 63,335 | ÷ | 988,826,319 | |
| Oct 30, 2008 | 0.42 | = | 25.20 | ÷ | 59.67 | 59.67 | = | 59,034 | ÷ | 989,364,303 | |
| Oct 26, 2007 | 0.74 | = | 40.18 | ÷ | 54.22 | 54.22 | = | 53,762 | ÷ | 991,615,851 | |
| Nov 7, 2006 | 0.92 | = | 43.61 | ÷ | 47.25 | 47.25 | = | 47,409 | ÷ | 1,003,442,336 | |
| Nov 4, 2005 | 1.11 | = | 46.09 | ÷ | 41.70 | 41.70 | = | 42,202 | ÷ | 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 financial metrics from 2005 to 2019 reveal a significant divergence between consistent revenue growth and fluctuating market valuation. While the ability to generate sales per share increased steadily, the market multiple applied to those sales experienced substantial volatility and a long-term decline.
- Sales per Share Growth
- A consistent and strong upward trend is observed in sales per share, which rose from $41.70 in 2005 to $153.34 in 2019. This indicates a sustained expansion in revenue generation capacity over the 14-year period.
- Share Price Volatility
- The share price demonstrated a cyclical pattern. An initial decline occurred between 2005 and 2008, reaching a low of $25.20. This was followed by a recovery and growth phase that peaked at $84.95 in 2015, before entering a downward trajectory to close at $55.80 in 2019.
- Price to Sales (P/S) Ratio Analysis
- The P/S ratio exhibited three distinct phases: an initial contraction from 1.11 in 2005 to 0.42 in 2008; a recovery period peaking at 0.89 in 2015; and a final period of compression, ending at a period low of 0.36 in 2019.
The data suggests that the growth in sales per share was not linearly correlated with share price appreciation. The contraction of the P/S ratio toward the end of the period, despite record-high sales per share, indicates a decline in the valuation multiple attributed to the company's revenue stream.
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Comparison to Competitors
Walgreens Boots Alliance Inc., P/S, long-term trends, comparison to competitors
| Walgreens Boots Alliance Inc. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Oct 28, 2019 | 0.36 | 0.88 | 0.53 | 0.55 |
| Oct 11, 2018 | 0.51 | 0.69 | 0.53 | 0.53 |
| Oct 25, 2017 | 0.59 | 0.55 | 0.44 | 0.45 |
| Oct 20, 2016 | 0.75 | 0.57 | 0.67 | 0.45 |
| Oct 28, 2015 | 0.89 | 0.58 | 0.70 | 0.54 |
| Oct 20, 2014 | 0.75 | 0.49 | 0.52 | 0.52 |
| Oct 21, 2013 | 0.77 | 0.50 | 0.60 | 0.53 |
| Oct 19, 2012 | 0.47 | 0.42 | 0.56 | 0.47 |
| Oct 25, 2011 | 0.42 | 0.41 | 0.53 | 0.44 |
| Oct 26, 2010 | 0.47 | 0.36 | 0.60 | 0.52 |
| Oct 26, 2009 | 0.61 | 0.36 | 0.35 | 0.52 |
| Oct 30, 2008 | 0.42 | 0.35 | 0.65 | 0.56 |
| Oct 26, 2007 | 0.74 | 0.45 | 0.86 | 0.57 |
| Nov 7, 2006 | 0.92 | 0.42 | 0.85 | 0.64 |
| Nov 4, 2005 | 1.11 | 0.46 | 0.94 | 0.74 |
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/S, long-term trends, comparison to sector (consumer staples distribution & retail)
| Walgreens Boots Alliance Inc. | Consumer Staples Distribution & Retail | |
|---|---|---|
| Oct 28, 2019 | 0.36 | 0.61 |
| Oct 11, 2018 | 0.51 | 0.56 |
| Oct 25, 2017 | 0.59 | 0.47 |
| Oct 20, 2016 | 0.75 | 0.50 |
| Oct 28, 2015 | 0.89 | 0.56 |
| Oct 20, 2014 | 0.75 | 0.51 |
| Oct 21, 2013 | 0.77 | 0.53 |
| Oct 19, 2012 | 0.47 | 0.47 |
| Oct 25, 2011 | 0.42 | 0.44 |
| Oct 26, 2010 | 0.47 | 0.51 |
| Oct 26, 2009 | 0.61 | 0.48 |
| Oct 30, 2008 | 0.42 | 0.54 |
| Oct 26, 2007 | 0.74 | 0.59 |
| Nov 7, 2006 | 0.92 | 0.64 |
| Nov 4, 2005 | 1.11 | 0.73 |
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/S, long-term trends, comparison to industry (consumer staples)
| Walgreens Boots Alliance Inc. | Consumer Staples | |
|---|---|---|
| Oct 28, 2019 | 0.36 | 1.47 |
| Oct 11, 2018 | 0.51 | 1.24 |
| Oct 25, 2017 | 0.59 | 1.25 |
| Oct 20, 2016 | 0.75 | 1.26 |
| Oct 28, 2015 | 0.89 | 1.23 |
| Oct 20, 2014 | 0.75 | 1.18 |
| Oct 21, 2013 | 0.77 | 1.14 |
| Oct 19, 2012 | 0.47 | 1.10 |
| Oct 25, 2011 | 0.42 | 1.03 |
| Oct 26, 2010 | 0.47 | 1.08 |
| Oct 26, 2009 | 0.61 | 1.01 |
| Oct 30, 2008 | 0.42 | 1.04 |
| Oct 26, 2007 | 0.74 | 1.20 |
| Nov 7, 2006 | 0.92 | 1.25 |
| Nov 4, 2005 | 1.11 | 1.26 |
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).