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


Employee productivity Fair
Sales growth Poor
EPS growth Fair
P/E growth Fair
EBIT growth Fair


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.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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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]

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