CVS Health Valuation
| CVS Stock | USD 59.96 0.95 1.61% |
At this time, the firm appears to be undervalued. CVS Health Corp shows a prevailing Real Value of $75.06 per share. The current price of the firm is $59.96. Our model approximates the value of CVS Health Corp from analyzing the firm fundamentals such as return on equity of 0.067, and Profit Margin of 0.01 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting CVS Health's valuation include:
Price Book 0.9909 | Enterprise Value 147.3 B | Enterprise Value Ebitda 10.3713 | Price Sales 0.2022 | Forward PE 9.3897 |
Undervalued
Today
Please note that CVS Health's price fluctuation is very steady at this time. Calculation of the real value of CVS Health Corp is based on 3 months time horizon. Increasing CVS Health's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the CVS stock is determined by what a typical buyer is willing to pay for full or partial control of CVS Health Corp. Since CVS Health is currently traded on the exchange, buyers and sellers on that exchange determine the market value of CVS Stock. However, CVS Health's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 59.96 | Real 75.06 | Target 90.16 | Hype 59.99 | Naive 60.67 |
The intrinsic value of CVS Health's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence CVS Health's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of CVS Health Corp helps investors to forecast how CVS stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of CVS Health more accurately as focusing exclusively on CVS Health's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use CVS Health's intrinsic value based on its ongoing forecasts of CVS Health's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against CVS Health's closest peers.
CVS Health Cash |
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CVS Valuation Trend
CVS Health's real value is important for investors to make better decisions and a more accurate overall view of CVS Health's financial worth over time. Using both CVS Health's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
CVS Revenue by Product
CVS Health Total Value Analysis
CVS Health Corp is currently anticipated to have company total value of 147.28 B with market capitalization of 74.26 B, debt of 79.39 B, and cash on hands of 12.95 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the CVS Health fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
147.28 B | 74.26 B | 79.39 B | 12.95 B |
CVS Health Investor Information
About 83.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.99. Some equities with similar Price to Book (P/B) outperform the market in the long run. CVS Health Corp has Price/Earnings To Growth (PEG) ratio of 2.23. The entity last dividend was issued on the 21st of October 2024. The firm had 2:1 split on the 7th of June 2005. Based on the key indicators obtained from CVS Health's historical financial statements, CVS Health Corp is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0631 | 0.0384 |
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| Total Cash From Operating Activities | 14.1 B | 13.4 B |
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| Operating Income | 14.4 B | 13.7 B |
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CVS Health Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. CVS Health has an asset utilization ratio of 143.27 percent. This implies that the Company is making $1.43 for each dollar of assets. An increasing asset utilization means that CVS Health Corp is more efficient with each dollar of assets it utilizes for everyday operations.CVS Health Ownership Allocation
CVS Health holds a total of 1.26 Billion outstanding shares. The majority of CVS Health Corp outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in CVS Health Corp to benefit from reduced commissions. Therefore, institutional investors are subject to a different set of regulations than regular investors in CVS Health. Please pay attention to any change in the institutional holdings of CVS Health Corp as this could imply that something significant has changed or is about to change at the company. Please note that on November 13, 2024, Representative Thomas Suozzi of US Congress acquired under $15k worth of CVS Health Corp's common stock.CVS Health Profitability Analysis
The company reported the last year's revenue of 357.78 B. Total Income to common stockholders was 8.37 B with profit before taxes, overhead, and interest of 53.46 B.CVS Health Past Distributions to stockholders
About CVS Health Valuation
The stock valuation mechanism determines CVS Health's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of CVS Health Corp based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of CVS Health. We calculate exposure to CVS Health's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of CVS Health's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | -203.4 B | -193.2 B | |
| Pretax Profit Margin | 0.03 | 0.05 | |
| Operating Profit Margin | 0.04 | 0.06 | |
| Net Profit Margin | 0.02 | 0.03 | |
| Gross Profit Margin | 0.15 | 0.29 |
CVS Health Quarterly Retained Earnings |
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A single share of CVS Health represents a small ownership stake in the entity. As a stockholder of CVS, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
CVS Health Dividends Analysis For Valuation
Dividends Paid is likely to gain to about 3.3 B in 2024, whereas Dividend Yield is likely to drop 0.02 in 2024. . Retained Earnings is likely to gain to about 64.7 B in 2024, whereas Retained Earnings Total Equity is likely to drop slightly above 39.9 B in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 3.1 B | 3.3 B | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | 0.38 | 0.34 | |
| Dividend Paid And Capex Coverage Ratio | 2.18 | 1.18 |
There are various types of dividends CVS Health can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of CVS shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from CVS Health Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When CVS pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of CVS Health by the value of the dividends paid out.
CVS Health Growth Indicators
Investing in growth stocks can be very risky. If the company such as CVS Health does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 1.3 B | |
| Quarterly Earnings Growth Y O Y | -0.961 | |
| Forward Price Earnings | 9.3897 |
CVS Health Current Valuation Indicators
CVS Health's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final CVS Health's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as CVS Health, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use CVS Health's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes CVS Health's worth.Additional Tools for CVS Stock Analysis
When running CVS Health's price analysis, check to measure CVS Health's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CVS Health is operating at the current time. Most of CVS Health's value examination focuses on studying past and present price action to predict the probability of CVS Health's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CVS Health's price. Additionally, you may evaluate how the addition of CVS Health to your portfolios can decrease your overall portfolio volatility.