– 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

http://www.valens-research.com/uniform-accounting-highlights-wbas-adjusted-eps-greater-reported-eps-expected-growth-rates-support-higher-valuations/?utm_source=rs

View Reddit by Valens_ResearchView Source