Stock Analysis on Net

CVS Health Corp. (NYSE:CVS)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Current Valuation Ratios

CVS Health Corp., current price multiples

Microsoft Excel
CVS Health Corp. Abbott Laboratories Cigna Group Danaher Corp. Elevance Health Inc. Humana Inc. Intuitive Surgical Inc. Medtronic PLC UnitedHealth Group Inc. Health Care Equipment & Services Health Care
Selected Financial Data
Current share price (P) $79.32
No. shares of common stock outstanding 1,258,449,553
Growth rate (g) 6.12%
 
Earnings per share (EPS) $6.63
Next year expected EPS $7.04
Operating profit per share $10.92
Sales per share $283.38
Book value per share (BVPS) $60.76
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 11.96 33.81 20.25 38.75 20.10 16.89 77.92 29.57 20.28 24.00 29.06
Price to next year expected earnings 11.27 31.63 18.19 35.36 17.87 14.38 68.65 28.98 17.30 21.80 26.33
Price-earnings-growth (PEG) 1.95 4.92 1.78 4.04 1.61 0.97 5.77 14.45 1.18 2.38 2.81
Price to operating profit (P/OP) 7.26 29.87 12.25 35.33 15.81 10.47 79.29 20.26 14.03 17.01 24.92
Price to sales (P/S) 0.28 4.82 0.54 7.69 0.71 0.40 19.66 3.56 1.23 1.12 2.36
Price to book value (P/BV) 1.31 5.01 2.26 3.44 3.06 2.58 10.53 2.16 5.11 3.42 5.23

Based on: 10-K (reporting date: 2023-12-31).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

CVS Health Corp., historical price multiples

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Price to earnings (P/E) 11.47 27.53 17.39 12.88 14.15
Price to operating profit (P/OP) 6.96 14.75 10.43 6.65 7.83
Price to sales (P/S) 0.27 0.36 0.47 0.35 0.37
Price to book value (P/BV) 1.25 1.61 1.83 1.33 1.47

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. CVS Health Corp. P/E ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. CVS Health Corp. P/OP ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. CVS Health Corp. P/S ratio decreased from 2021 to 2022 and from 2022 to 2023.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. CVS Health Corp. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

CVS Health Corp., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,258,449,553 1,284,111,667 1,312,510,426 1,311,354,926 1,304,159,680
Selected Financial Data (US$)
Net income attributable to CVS Health (in millions) 8,344 4,149 7,910 7,179 6,634
Earnings per share (EPS)2 6.63 3.23 6.03 5.47 5.09
Share price1, 3 76.05 88.96 104.79 70.53 72.00
Valuation Ratio
P/E ratio4 11.47 27.53 17.39 12.88 14.15
Benchmarks
P/E Ratio, Competitors5
Abbott Laboratories 34.57 26.76 29.13 48.49 41.83
Cigna Group 19.03 13.13 13.43 8.71 13.26
Danaher Corp. 39.09 25.65 29.94 44.49 38.34
Elevance Health Inc. 19.80 19.20 18.13 15.87 15.96
Humana Inc. 17.64 22.52 18.34 14.48 18.10
Intuitive Surgical Inc. 74.11 64.99 59.94 87.47 48.72
Medtronic PLC 30.94 23.38 46.56 26.30 28.78
UnitedHealth Group Inc. 20.53 22.46 26.03 20.54 20.48
P/E Ratio, Sector
Health Care Equipment & Services 23.99 23.33 25.54 22.65 22.70
P/E Ratio, Industry
Health Care 28.84 21.08 21.04 28.47 21.23

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net income attributable to CVS Health ÷ No. shares of common stock outstanding
= 8,344,000,000 ÷ 1,258,449,553 = 6.63

3 Closing price as at the filing date of CVS Health Corp. Annual Report.

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 76.05 ÷ 6.63 = 11.47

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. CVS Health Corp. P/E ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Operating Profit (P/OP)

CVS Health Corp., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,258,449,553 1,284,111,667 1,312,510,426 1,311,354,926 1,304,159,680
Selected Financial Data (US$)
Operating income (in millions) 13,743 7,746 13,193 13,911 11,987
Operating profit per share2 10.92 6.03 10.05 10.61 9.19
Share price1, 3 76.05 88.96 104.79 70.53 72.00
Valuation Ratio
P/OP ratio4 6.96 14.75 10.43 6.65 7.83
Benchmarks
P/OP Ratio, Competitors5
Abbott Laboratories 30.54 22.18 24.45 40.69 34.03
Cigna Group 11.51 10.40 9.08 9.03 8.38
Danaher Corp. 35.64 20.97 25.14 36.91 34.47
Elevance Health Inc. 15.57 15.05 15.70 12.10 13.55
Humana Inc. 10.94 16.63 17.08 9.78 15.35
Intuitive Surgical Inc. 75.42 54.49 56.11 88.37 48.89
Medtronic PLC 21.20 20.48 37.44 26.29 21.26
UnitedHealth Group Inc. 14.20 15.89 18.77 14.12 14.40
P/OP Ratio, Sector
Health Care Equipment & Services 17.00 17.45 19.20 16.88 16.21
P/OP Ratio, Industry
Health Care 24.73 16.35 17.40 21.24 17.43

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 13,743,000,000 ÷ 1,258,449,553 = 10.92

3 Closing price as at the filing date of CVS Health Corp. Annual Report.

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 76.05 ÷ 10.92 = 6.96

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. CVS Health Corp. P/OP ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Sales (P/S)

CVS Health Corp., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,258,449,553 1,284,111,667 1,312,510,426 1,311,354,926 1,304,159,680
Selected Financial Data (US$)
Revenues from customers (in millions) 356,623 321,629 290,912 267,908 255,765
Sales per share2 283.38 250.47 221.65 204.30 196.11
Share price1, 3 76.05 88.96 104.79 70.53 72.00
Valuation Ratio
P/S ratio4 0.27 0.36 0.47 0.35 0.37
Benchmarks
P/S Ratio, Competitors5
Abbott Laboratories 4.93 4.25 4.78 6.30 4.83
Cigna Group 0.51 0.49 0.42 0.46 0.44
Danaher Corp. 7.76 5.79 6.37 7.01 6.29
Elevance Health Inc. 0.70 0.74 0.81 0.60 0.74
Humana Inc. 0.42 0.68 0.65 0.64 0.76
Intuitive Surgical Inc. 18.71 13.81 17.89 21.29 15.01
Medtronic PLC 3.72 3.72 5.57 4.36 4.36
UnitedHealth Group Inc. 1.25 1.40 1.58 1.24 1.18
P/S Ratio, Sector
Health Care Equipment & Services 1.12 1.19 1.38 1.23 1.15
P/S Ratio, Industry
Health Care 2.34 2.17 2.29 2.24 2.16

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Revenues from customers ÷ No. shares of common stock outstanding
= 356,623,000,000 ÷ 1,258,449,553 = 283.38

3 Closing price as at the filing date of CVS Health Corp. Annual Report.

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 76.05 ÷ 283.38 = 0.27

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. CVS Health Corp. P/S ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Book Value (P/BV)

CVS Health Corp., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 1,258,449,553 1,284,111,667 1,312,510,426 1,311,354,926 1,304,159,680
Selected Financial Data (US$)
Total CVS Health shareholders’ equity (in millions) 76,461 71,015 75,075 69,389 63,864
Book value per share (BVPS)2 60.76 55.30 57.20 52.91 48.97
Share price1, 3 76.05 88.96 104.79 70.53 72.00
Valuation Ratio
P/BV ratio4 1.25 1.61 1.83 1.33 1.47
Benchmarks
P/BV Ratio, Competitors5
Abbott Laboratories 5.12 5.06 5.75 6.65 4.96
Cigna Group 2.13 1.95 1.53 1.46 1.49
Danaher Corp. 3.47 3.64 4.16 3.93 3.72
Elevance Health Inc. 3.02 3.19 3.07 2.19 2.42
Humana Inc. 2.70 4.13 3.34 3.55 4.07
Intuitive Surgical Inc. 10.01 7.78 8.59 9.53 8.13
Medtronic PLC 2.26 2.24 3.26 2.48 2.66
UnitedHealth Group Inc. 5.18 5.81 6.27 4.83 4.92
P/BV Ratio, Sector
Health Care Equipment & Services 3.42 3.55 3.81 3.28 3.14
P/BV Ratio, Industry
Health Care 5.19 4.72 4.81 4.61 4.46

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Total CVS Health shareholders’ equity ÷ No. shares of common stock outstanding
= 76,461,000,000 ÷ 1,258,449,553 = 60.76

3 Closing price as at the filing date of CVS Health Corp. Annual Report.

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 76.05 ÷ 60.76 = 1.25

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. CVS Health Corp. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023.