Walgreens: Undervalued Pharma Giant Poised For A Turnaround Amid Cost-Cutting And Activist Investor Potential

Giacomo Bocanegra
99 Followers
(13min)

Summary

  • Walgreens Boots Alliance is significantly undervalued, trading at low P/E multiples and a 44% discount to its book value, with strong upside potential.
  • New CEO Tim Wentworth's cost-cutting strategy and potential sale of VillageMD are expected to boost cash flow and equity value.
  • Conservative valuation models (DCF, trading comps, exit multiple, GGM) indicate WBA is worth at least $28 per share, making it a strong buy.
  • Risks include new management execution and competition from Walmart's pharmacy arm, but WBA's market share and cost-cutting plans provide a margin of safety.

Walgreens

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Investment Thesis

Walgreens Boots Alliance (NASDAQ:WBA) is significantly undervalued. According to the recently reported 10-K, the company's adjusted diluted EPS (non-GAAP measure) was $2.88. Based on this adjusted EPS and sell-side analyst consensus for 2025, the company is currently trading at

This article was written by

99 Followers
Mr. Bocanegra previously held research roles at Lucerne Capital Management and Wells Fargo. He holds a bachelor’s degree in economics from Lawrence University.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of WBA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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