CVS Fair Value Estimate
$415.20406.3% undervalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
CVS Health Corp
Exchange: NYSESector: HealthcareIndustry: Healthcare Plans
CVS Caremark Corporation (CVS Caremark), together with its subsidiaries, is a pharmacy health care provider in the United States. CVS Caremark provides pharmacy services through its pharmacy benefit management (PBM), mail order and specialty pharmacy division, CVS Caremark Pharmacy Services; approximately 7,300 CVS/pharmacy retail stores; retail-based health clinic subsidiary, MinuteClinic, and its online retail pharmacy, CVS.com. The Company operates in three business segments: Pharmacy Services, Retail Pharmacy and Corporate. Its corporate segment provides management and administrative services to support the overall operations of the Company. In April 2012, Health Net, Inc.'s subsidiary, Health Net Life Insurance Company, sold its Medicare stand-alone Prescription Drug Plan (Medicare PDP) business to a subsidiary of CVS Caremark. In February 2013, it bought Drogaria Onofre.
Did you know?
Free cash flow has been growing at -4.7% annually.
Current Price
$82.01
-0.10%GoodMoat Value
$415.20
406.3% undervaluedProfile
Valuation (TTM)
Market Cap$104.11B
P/E58.88
EV$159.85B
P/B1.38
Shares Out1.27B
P/Sales0.26
Revenue$402.07B
EV/EBITDA32.76
CVS Health Corp (CVS) Valuation
CVS Valuation Metrics
FCF$7.81B
FCF Growth Rate-4.65%
EPS Growth (CAGR)-19.78%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →CVS Valuation & Fair Value Analysis
CVS Health Corp (CVS) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for CVS Health Corp is $415.20. The current stock price is $82.01, suggesting the stock is 406.3% undervalued.
The price-to-earnings (P/E) ratio is 58.88. Price-to-book ratio is 1.38. Price-to-sales ratio is 0.26. Enterprise value to EBITDA is 32.76. PEG ratio is 0.76.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of CVS Health Corp's intrinsic value.