CVS Health Corp., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to CVS Health	8,344)	4,149)	7,910)	7,179)	6,634)
Net (income) loss attributable to noncontrolling interests	24)	16)	(12)	13)	(3)
Net noncash charges	5,043)	5,009)	6,419)	5,514)	4,718)
Change in operating assets and liabilities, net of effects from acquisitions	15)	7,003)	3,948)	3,159)	1,499)
Net cash provided by operating activities	13,426)	16,177)	18,265)	15,865)	12,848)
Interest paid, net of tax¹	1,811)	1,657)	1,872)	2,140)	2,177)
Purchases of property and equipment	(3,031)	(2,727)	(2,520)	(2,437)	(2,457)
Free cash flow to the firm (FCFF)	12,206)	15,107)	17,617)	15,568)	12,568)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the CVS Health Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	CVS Health Corp. FCFF decreased from 2021 to 2022 and from 2022 to 2023.

CVS Health Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	25.10%	26.00%	24.20%	26.30%	26.30%
Interest Paid, Net of Tax
Interest paid, before tax	2,418)	2,239)	2,469)	2,904)	2,954)
Less: Interest paid, tax²	607)	582)	597)	764)	777)
Interest paid, net of tax	1,811)	1,657)	1,872)	2,140)	2,177)

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 See details »

² 2023 Calculation
Interest paid, tax = Interest paid × EITR
= 2,418 × 25.10% = 607

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	134,873)
Free cash flow to the firm (FCFF)	12,206)
Valuation Ratio
EV/FCFF	11.05
Benchmarks
EV/FCFF, Competitors¹
Abbott Laboratories	34.51
Cigna Group	10.91
Elevance Health Inc.	15.03
Humana Inc.	7.93
Intuitive Surgical Inc.	170.76
Medtronic PLC	24.46
Shockwave Medical Inc.	72.81
UnitedHealth Group Inc.	17.49
EV/FCFF, Sector
Health Care Equipment & Services	18.15
EV/FCFF, Industry
Health Care	23.19

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

¹ Click competitor name to see calculations.

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

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

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	146,035)	151,066)	181,495)	146,595)	154,629)
Free cash flow to the firm (FCFF)²	12,206)	15,107)	17,617)	15,568)	12,568)
Valuation Ratio
EV/FCFF³	11.96	10.00	10.30	9.42	12.30
Benchmarks
EV/FCFF, Competitors⁴
Abbott Laboratories	36.51	23.24	23.47	36.94	33.05
Cigna Group	10.44	13.38	14.17	9.16	10.24
Elevance Health Inc.	14.19	13.32	12.74	6.04	12.73
Humana Inc.	9.95	14.88	42.03	7.92	8.46
Intuitive Surgical Inc.	170.92	85.45	56.01	76.70	54.58
Medtronic PLC	26.54	20.32	33.84	21.43	22.07
Shockwave Medical Inc.	57.01	71.18	1,985.84	—	—
UnitedHealth Group Inc.	17.59	19.30	22.21	15.82	17.51
EV/FCFF, Sector
Health Care Equipment & Services	18.53	17.34	19.69	14.92	16.68
EV/FCFF, Industry
Health Care	23.96	18.01	17.46	18.09	18.44

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 See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 146,035 ÷ 12,206 = 11.96

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	CVS Health Corp. EV/FCFF ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

CVS Health Corp. (NYSE:CVS)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical