As a standalone business, our Luke Lango writes, Rite Aid remains viable. It is currently valued at just 7.7 times trailing earnings before interest, taxes and depreciation (EBITDA), the metric most used to evaluate potential acquisitions.
But if you look closer, the bull case for Rite Aid falls apart. Revenue is falling, and earnings are tumbling faster, a huge problem given the still-significant leverage the company will have after the Walgreens sale is complete.
In September, Walgreens announced that it had regulatory approval to buy 1,932 Rite Aid stores, three distribution centers, including one in Connecticut, and related inventory from Rite Aid Corporation. Polzin said the deal will become official in the ...
Rite Aid Corporation (NYSE:RAD) market capitalization at present is $1.96B at the rate of $1.79 a share. The firm's price-to-sales ratio was noted 0.00 in contrast with an overall industry average of 92.35.