– 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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