Walgreen Company ($WAG) Cautious Buy or Hold to $57 Confident Investor Rating: Fair
| Company name | Walgreen Company |
| Stock ticker | WAG |
| Live stock price | [stckqut]WAG[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Fair |
| Sales growth | Poor |
| EPS growth | Fair |
| P/E growth | Fair |
| EBIT growth | Fair |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $56.37 |
| Target stock price (averages with growth) | $72.26 |
| Target stock price (averages with no growth) | $62.92 |
| Target stock price (manual assumptions) | $62.18 |
The following company description is from Google Finance: http://www.google.com/finance?q=wag
Walgreen Co. (Walgreens) together with its subsidiaries, operates the drugstore chain in the United States. The Company provides its customers with access to consumer goods and services, pharmacy, and health and wellness services in communities across America. The Company offers its products and services through drugstores, as well as through mails, by telephone and online. The Company sells prescription and non-prescription drugs, as well as general merchandises, including household items, convenience and fresh foods, personal care, beauty care, photofinishing and candy. In November 2013, the Company announced that it has completed its acquisition of certain assets of Kerr Drug’s retail drugstores and specialty pharmacy business.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Walgreen Company as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $57.97
Growth: 0.122
Current EPS (TTM): $2.56
P/E: 22
Future EPS Calc: $4.55
Future Stock Price Calc: $100.14
Target stock price: $62.18
I hope that this makes you a better investor. [/s2If]