Thursday, April 6, 2017

Uniform Accounting Highlights WBA’s Adjusted EPS is greater than as-reported EPS, and expected growth rates support higher valuations

  • WBA’s traditional EPS is materially distorted by the treatment of operating lease expenses on the as-reported accounting statements

  • After making the appropriate UAFRS adjustments, EPS’ has been significantly greater than the as-reported EPS historically at $4.66 LTM vs traditional EPS of $3.78

  • Adjusted EPS growth has also been greater than as-reported EPS growth at 9% on an LTM basis, versus traditional -9% EPS growth

  • Materially stronger EPS’ at strong growth rates indicates that the firm is likely fairly valued at worst, with an Adjusted PEG ratio of 1.0x

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Submitted April 06, 2017 at 09:15PM by Valens_Research http://ift.tt/2p7vJAj

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