Stock Analysis on Net

CVS Health Corp. (NYSE:CVS)

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

CVS Health Corp., FCFE calculation

US$ in millions

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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
Purchases of property and equipment (3,031) (2,727) (2,520) (2,437) (2,457)
Commercial paper borrowings (repayments), net 200
Proceeds from issuance of short-term loan 5,000
Repayment of short-term loan (5,000) (720)
Proceeds from issuance of long-term debt 10,898 987 9,958 3,736
Repayments of long-term debt (3,166) (4,211) (10,254) (15,631) (8,336)
Free cash flow to equity (FCFE) 18,327 9,239 6,478 7,755 5,071

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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to CVS Health Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. CVS Health Corp. FCFE increased from 2021 to 2022 and from 2022 to 2023.

Price to FCFE Ratio, Current

CVS Health Corp., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 1,258,449,553
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 18,327
FCFE per share 14.56
Current share price (P) 67.33
Valuation Ratio
P/FCFE 4.62
Benchmarks
P/FCFE, Competitors1
Abbott Laboratories 71.76
Cigna Group 10.40
Elevance Health Inc. 16.97
Humana Inc. 10.26
Intuitive Surgical Inc. 176.56
Medtronic PLC 26.43
Shockwave Medical Inc. 15.88
UnitedHealth Group Inc. 15.20
P/FCFE, Sector
Health Care Equipment & Services 16.05
P/FCFE, Industry
Health Care 16.27

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

1 Click competitor name to see calculations.

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


Price to FCFE Ratio, Historical

CVS Health Corp., historical P/FCFE 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$)
Free cash flow to equity (FCFE) (in millions)2 18,327 9,239 6,478 7,755 5,071
FCFE per share3 14.56 7.19 4.94 5.91 3.89
Share price1, 4 76.05 88.96 104.79 70.53 72.00
Valuation Ratio
P/FCFE5 5.22 12.36 21.23 11.93 18.52
Benchmarks
P/FCFE, Competitors6
Abbott Laboratories 76.56 26.11 24.52 38.42 53.19
Cigna Group 9.86 18.23 10.98 16.30 20.76
Elevance Health Inc. 16.04 14.26 11.07 7.75 13.72
Humana Inc. 12.01 30.99 11.49 8.47 11.73
Intuitive Surgical Inc. 177.77 89.67 58.39 81.15 57.31
Medtronic PLC 29.20 19.71 38.91 23.06 26.62
Shockwave Medical Inc. 12.55 70.16 2,410.63
UnitedHealth Group Inc. 15.33 12.57 20.11 13.93 13.90
P/FCFE, Sector
Health Care Equipment & Services 16.45 16.54 20.24 16.77 19.50
P/FCFE, Industry
Health Care 16.86 18.40 17.97 17.17 13.58

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 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 18,327,000,000 ÷ 1,258,449,553 = 14.56

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

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 76.05 ÷ 14.56 = 5.22

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. CVS Health Corp. P/FCFE ratio decreased from 2021 to 2022 and from 2022 to 2023.