Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

CVS Health Corp. (NYSE:CVS)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

CVS Health Corp., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income (loss) attributable to CVS Health 7,179  6,634  (594) 6,622  5,317 
Add: Net income attributable to noncontrolling interest 13  (3) (2)
Less: Loss from discontinued operations, net of tax (9) —  —  (8) (1)
Add: Income tax expense 2,569  2,366  2,002  1,637  3,317 
Earnings before tax (EBT) 9,770  8,997  1,406  8,268  8,637 
Add: Interest expense 2,907  3,035  2,619  1,062  1,078 
Earnings before interest and tax (EBIT) 12,677  12,032  4,025  9,330  9,715 
Add: Depreciation and amortization 4,441  4,371  2,718  2,479  2,475 
Earnings before interest, tax, depreciation and amortization (EBITDA) 17,118  16,403  6,743  11,809  12,190 

Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-09).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. CVS Health Corp.’s EBITDA increased from 2018 to 2019 and from 2019 to 2020.

Enterprise Value to EBITDA Ratio, Current

CVS Health Corp., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 146,424 
Earnings before interest, tax, depreciation and amortization (EBITDA) 17,118 
Valuation Ratio
EV/EBITDA 8.55
Benchmarks
EV/EBITDA, Industry
Consumer Services 20.31

Based on: 10-K (filing date: 2021-02-16).

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

CVS Health Corp., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 146,595  154,629  142,176  96,003  103,374 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 17,118  16,403  6,743  11,809  12,190 
Valuation Ratio
EV/EBITDA3 8.56 9.43 21.09 8.13 8.48
Benchmarks
EV/EBITDA, Industry
Consumer Services 15.05 14.26 13.52 12.21

Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-09).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 146,595 ÷ 17,118 = 8.56

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. CVS Health Corp.’s EV/EBITDA ratio decreased from 2018 to 2019 and from 2019 to 2020.