CVS Health Valuation

CVS Stock  USD 78.48  0.55  0.71%   
At this time, the firm appears to be undervalued. CVS Health Corp shows a prevailing Real Value of $86.54 per share. The current price of the firm is $78.48. Our model approximates the value of CVS Health Corp from analyzing the firm fundamentals such as return on equity of 0.0229, and Profit Margin of 0 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting CVS Health's valuation include:
Price Book
1.3275
Enterprise Value
169.2 B
Enterprise Value Ebitda
17.158
Price Sales
0.2497
Forward PE
10.9529
Undervalued
Today
78.48
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  78.48 Real  86.54 Target  94.84 Hype  78.58
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.
86.54
Real Value
88.91
Upside
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:
Earnings
Estimates
LowProjectedHigh
1.661.831.98
Details
Hype
Prediction
LowEstimatedHigh
76.2178.5880.95
Details
28 Analysts
Consensus
LowTarget PriceHigh
86.3094.84105.27
Details
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

8.94 Billion

CVS Revenue by Product

CVS Health Total Value Analysis

CVS Health Corp is currently anticipated to have company total value of 169.2 B with market capitalization of 99.84 B, debt of 93.59 B, and cash on hands of 8.45 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 PriceMarket CapDebt ObligationsCash
169.2 B
99.84 B
93.59 B
8.45 B

CVS Health Investor Information

About 89.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.33. 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 0.56. The entity last dividend was issued on the 22nd of January 2026. The firm had 2:1 split on the 7th of June 2005. CVS Health Corp may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.02450.0258
Notably Down
Slightly volatile
Total Cash From Operating Activities5.6 B10.6 B
Way Down
Slightly volatile
Operating Income10.9 B10.4 B
Sufficiently Up
Slightly volatile

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 154.01 percent. This implies that the Company is making $1.54 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.
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes

CVS Health Profitability Analysis

Considering the key profitability indicators obtained from CVS Health's historical financial statements, CVS Health Corp may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in March. Profitability indicators assess CVS Health's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1985-09-30
Previous Quarter
-4 B
Current Value
2.9 B
Quarterly Volatility
934.7 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
At this time, CVS Health's Gross Profit is comparatively stable compared to the past year. Gross Profit Margin is likely to gain to 0.28 in 2026, whereas Pretax Profit Margin is likely to drop 0.01 in 2026.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.280.1377
Way Up
Slightly volatile
Operating Profit Margin0.02450.0258
Notably Down
Slightly volatile
Pretax Profit Margin0.0050.0053
Notably Down
Slightly volatile
For CVS Health profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CVS Health Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CVS Health utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CVS Health's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CVS Health over time as well as its relative position and ranking within its peers.

CVS Health Earnings per Share Projection vs Actual

The next projected EPS of CVS Health is estimated to be 1.8263 with future projections ranging from a low of 1.66 to a high of 1.98. CVS Health's most recent 12-month trailing earnings per share (EPS TTM) is at 1.39. Please be aware that the consensus of earnings estimates for CVS Health Corp is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
CVS Health is projected to generate 1.8263 in earnings per share on the 30th of June 2026. CVS Health earnings estimates show analyst consensus about projected CVS Health EPS (Earning Per Share). It derives the highest and the lowest estimates based on CVS Health's historical volatility. Many public companies, such as CVS Health, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

CVS Health Earnings Estimation Breakdown

The calculation of CVS Health's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of CVS Health is estimated to be 1.8263 with the future projection ranging from a low of 1.66 to a high of 1.98. Please be aware that this consensus of annual earnings estimates for CVS Health Corp is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
1.66
Lowest
Expected EPS
1.8263
1.98
Highest

CVS Health Earnings Projection Consensus

Suppose the current estimates of CVS Health's value are higher than the current market price of the CVS Health stock. In this case, investors may conclude that CVS Health is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and CVS Health's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 30th of June 2026Current EPS (TTM)
2784.54%
0.0
1.8263
1.39

CVS Health Ownership Allocation

CVS Health holds a total of 1.27 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 January 14, 2026, Representative Julia Letlow 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 402.07 B. Total Income to common stockholders was 1.77 B with profit before taxes, overhead, and interest of 53.13 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 ReportedProjected for Next Year
Gross Profit55.4 B58.1 B
Pretax Profit Margin 0.01  0.01 
Operating Profit Margin 0.03  0.02 
Gross Profit Margin 0.14  0.28 

CVS Health Quarterly Retained Earnings

61.2 Billion

CVS Health's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether CVS Health's value is low or high relative to the company's performance and growth projections. Determining the market value of CVS Health can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

At this time, CVS Health's Dividends Paid is comparatively stable compared to the past year. Dividend Payout Ratio is likely to gain to 2.02 in 2026, whereas Dividend Yield is likely to drop 0.03 in 2026. . At this time, CVS Health's Retained Earnings are comparatively stable compared to the past year. Price Earnings Ratio is likely to gain to 59.72 in 2026, whereas Retained Earnings Total Equity is likely to drop slightly above 39.9 B in 2026.
Last ReportedProjected for Next Year
Dividends Paid3.4 B3.6 B
Dividend Yield 0.03  0.03 
Dividend Payout Ratio 1.92  2.02 
Dividend Paid And Capex Coverage Ratio 1.71  1.20 
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 Outstanding1.3 B
Quarterly Earnings Growth Y O Y0.766
Forward Price Earnings10.9529

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.