Walgreens Boots Current Valuation vs. Z Score
| W8A Stock | 8.40 0.19 2.21% |
For Walgreens Boots profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Walgreens Boots to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Walgreens Boots Alliance utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Walgreens Boots's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Walgreens Boots Alliance over time as well as its relative position and ranking within its peers.
Walgreens |
Walgreens Boots Alliance Z Score vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Walgreens Boots's current stock value. Our valuation model uses many indicators to compare Walgreens Boots value to that of its competitors to determine the firm's financial worth. Walgreens Boots Alliance is rated first in current valuation category among its peers. It is rated first in z score category among its peers . The ratio of Current Valuation to Z Score for Walgreens Boots Alliance is about 16,072,318,681 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Walgreens Boots' earnings, one of the primary drivers of an investment's value.Walgreens Current Valuation vs. Competition
Walgreens Boots Alliance is rated first in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Food & Staples Retailing industry is at this time estimated at about 128.58 Billion. Walgreens Boots totals roughly 64.29 Billion in current valuation claiming about 50% of equities under Food & Staples Retailing industry.
Walgreens Z Score vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Walgreens Boots |
| = | 64.29 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Walgreens Boots |
| = | 4.0 |
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
Walgreens Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Walgreens Boots. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Walgreens Boots position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Walgreens Boots' important profitability drivers and their relationship over time.
Use Walgreens Boots in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Walgreens Boots position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Walgreens Boots will appreciate offsetting losses from the drop in the long position's value.Walgreens Boots Pair Trading
Walgreens Boots Alliance Pair Trading Analysis
The ability to find closely correlated positions to Walgreens Boots could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Walgreens Boots when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Walgreens Boots - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Walgreens Boots Alliance to buy it.
The correlation of Walgreens Boots is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Walgreens Boots moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Walgreens Boots Alliance moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Walgreens Boots can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Walgreens Boots position
In addition to having Walgreens Boots in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Target Outcome ETFs Thematic Idea Now
Target Outcome ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Target Outcome ETFs theme has 93 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Target Outcome ETFs Theme or any other thematic opportunities.
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Additional Tools for Walgreens Stock Analysis
When running Walgreens Boots' price analysis, check to measure Walgreens Boots' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Walgreens Boots is operating at the current time. Most of Walgreens Boots' value examination focuses on studying past and present price action to predict the probability of Walgreens Boots' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Walgreens Boots' price. Additionally, you may evaluate how the addition of Walgreens Boots to your portfolios can decrease your overall portfolio volatility.