Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Walgreens Boots Alliance Inc., EBITDA calculation

US$ in millions

12 months ended:	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Net earnings attributable to Walgreens Boots Alliance, Inc.	3,982)	5,024)	4,078)	4,173)	4,220)	1,932)
Add: Net income attributable to noncontrolling interest	(20)	7)	23)	18)	59)	99)
Add: Income tax expense	588)	998)	760)	997)	1,056)	1,526)
Earnings before tax (EBT)	4,550)	6,029)	4,861)	5,188)	5,335)	3,557)
Add: Interest expense, net	704)	616)	693)	596)	605)	156)
Earnings before interest and tax (EBIT)	5,254)	6,645)	5,554)	5,784)	5,940)	3,713)
Add: Depreciation and amortization	2,038)	1,770)	1,654)	1,718)	1,742)	1,316)
Earnings before interest, tax, depreciation and amortization (EBITDA)	7,292)	8,415)	7,208)	7,502)	7,682)	5,029)

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).

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Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	Walgreens Boots Alliance Inc. EBITDA increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Walgreens Boots Alliance Inc., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	50,256)
Earnings before interest, tax, depreciation and amortization (EBITDA)	7,292)
Valuation Ratio
EV/EBITDA	6.89
Benchmarks
EV/EBITDA, Competitors¹
Costco Wholesale Corp.	28.90
Target Corp.	10.39
Walmart Inc.	14.52
EV/EBITDA, Sector
Consumer Staples Distribution & Retail	25.18
EV/EBITDA, Industry
Consumer Staples	26.30

Based on: 10-K (reporting date: 2019-08-31).

¹ Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Walgreens Boots Alliance Inc., historical EV/EBITDA calculation, comparison to benchmarks

	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	66,257)	81,590)	80,464)	97,390)	104,315)	59,181)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	7,292)	8,415)	7,208)	7,502)	7,682)	5,029)
Valuation Ratio
EV/EBITDA³	9.09	9.70	11.16	12.98	13.58	11.77
Benchmarks
EV/EBITDA, Competitors⁴
Costco Wholesale Corp.	20.13	15.84	—	—	—	—
Target Corp.	7.49	—	—	—	—	—
Walmart Inc.	13.73	—	—	—	—	—
EV/EBITDA, Sector
Consumer Staples Distribution & Retail	13.73	—	—	—	—	—
EV/EBITDA, Industry
Consumer Staples	19.15	—	—	—	—	—

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).

¹ See details »

² See details »

³ 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 66,257 ÷ 7,292 = 9.09

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/EBITDA	Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock.	Walgreens Boots Alliance Inc. EV/EBITDA ratio decreased from 2017 to 2018 and from 2018 to 2019.

Walgreens Boots Alliance Inc. (NASDAQ:WBA)

Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical