Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

Current Valuation Ratios
Historical Valuation Ratios (Summary)
Price to Earnings (P/E)
Price to Operating Profit (P/OP)
Price to Sales (P/S)
Price to Book Value (P/BV)

CVS Health Corp., current price multiples

	CVS Health Corp.	Walgreens Boots Alliance Inc.	Food & Drug Retailers	Consumer Services
Selected Financial Data
Current share price (P)	$64.70
No. shares of common stock outstanding	1,307,090,830
Growth rate (g)	7.15%

Earnings per share (EPS)	$5.08
Next year expected EPS	$5.44
Operating profit per share	$9.17
Sales per share	$195.68
Book value per share (BVPS)	$48.86
Valuation Ratios (Price Multiples)
Price to earnings (P/E)	12.75	9.25	11.44	37.24
Price to next year expected earnings	11.90	8.46	10.58	32.80
Price-earnings-growth (PEG)	1.78	0.99	1.42	2.75
Price to operating profit (P/OP)	7.06	7.37	7.15	24.14
Price to sales (P/S)	0.33	0.27	0.31	1.82
Price to book value (P/BV)	1.32	1.57	1.39	7.68

Based on: 10-K (filing date: 2020-02-18).

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.

CVS Health Corp., historical price multiples

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Price to earnings (P/E)	14.15	—	10.69	14.91	18.98
Price to operating profit (P/OP)	7.83	18.65	7.44	7.65	10.49
Price to sales (P/S)	0.37	0.39	0.38	0.45	0.65
Price to book value (P/BV)	1.47	1.29	1.88	2.15	2.67

Based on: 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), 10-K (filing date: 2016-02-09).

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.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
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.’s P/OP ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.
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.’s P/S ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return.	CVS Health Corp.’s P/BV ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

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

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
No. shares of common stock outstanding¹	1,304,159,680	1,297,082,165	1,014,532,157	1,025,699,605	1,098,490,835
Selected Financial Data (US$)
Net income (loss) attributable to CVS Health (in millions)	6,634	(594)	6,622	5,317	5,237
Earnings per share (EPS)²	5.09	-0.46	6.53	5.18	4.77
Share price^1, 3	72.00	57.83	69.79	77.31	90.51
Valuation Ratio
P/E ratio⁴	14.15	—	10.69	14.91	18.98
Benchmarks
P/E Ratio, Competitors⁵
Walgreens Boots Alliance Inc.	12.51	13.39	17.17	21.03	21.92
P/E Ratio, Sector
Food & Drug Retailers	13.54	32.12	13.16	17.60	20.29
P/E Ratio, Industry
Consumer Services	31.72	29.01	23.41	25.44	27.27

Based on: 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), 10-K (filing date: 2016-02-09).

¹ Data adjusted for splits and stock dividends.

² 2019 Calculation
EPS = Net income (loss) attributable to CVS Health ÷ No. shares of common stock outstanding
= 6,634,000,000 ÷ 1,304,159,680 = 5.09

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

⁴ 2019 Calculation
P/E ratio = Share price ÷ EPS
= 72.00 ÷ 5.09 = 14.15

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.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

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

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
No. shares of common stock outstanding¹	1,304,159,680	1,297,082,165	1,014,532,157	1,025,699,605	1,098,490,835
Selected Financial Data (US$)
Operating income (in millions)	11,987	4,021	9,517	10,366	9,475
Operating profit per share²	9.19	3.10	9.38	10.11	8.63
Share price^1, 3	72.00	57.83	69.79	77.31	90.51
Valuation Ratio
P/OP ratio⁴	7.83	18.65	7.44	7.65	10.49
Benchmarks
P/OP Ratio, Competitors⁵
Walgreens Boots Alliance Inc.	9.96	10.49	12.60	14.63	19.81
P/OP Ratio, Sector
Food & Drug Retailers	8.46	13.64	9.34	10.21	13.57
P/OP Ratio, Industry
Consumer Services	20.56	18.48	17.84	15.62	15.33

Based on: 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), 10-K (filing date: 2016-02-09).

¹ Data adjusted for splits and stock dividends.

² 2019 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 11,987,000,000 ÷ 1,304,159,680 = 9.19

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

⁴ 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 72.00 ÷ 9.19 = 7.83

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.’s P/OP ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

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

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
No. shares of common stock outstanding¹	1,304,159,680	1,297,082,165	1,014,532,157	1,025,699,605	1,098,490,835
Selected Financial Data (US$)
Revenues from customers (in millions)	255,765	193,919	184,765	177,526	153,290
Sales per share²	196.11	149.50	182.12	173.08	139.55
Share price^1, 3	72.00	57.83	69.79	77.31	90.51
Valuation Ratio
P/S ratio⁴	0.37	0.39	0.38	0.45	0.65
Benchmarks
P/S Ratio, Competitors⁵
Walgreens Boots Alliance Inc.	0.36	0.51	0.59	0.75	0.89
P/S Ratio, Sector
Food & Drug Retailers	0.37	0.44	0.46	0.57	0.75
P/S Ratio, Industry
Consumer Services	1.55	1.44	1.44	1.28	1.26

Based on: 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), 10-K (filing date: 2016-02-09).

¹ Data adjusted for splits and stock dividends.

² 2019 Calculation
Sales per share = Revenues from customers ÷ No. shares of common stock outstanding
= 255,765,000,000 ÷ 1,304,159,680 = 196.11

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

⁴ 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 72.00 ÷ 196.11 = 0.37

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.’s P/S ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

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

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
No. shares of common stock outstanding¹	1,304,159,680	1,297,082,165	1,014,532,157	1,025,699,605	1,098,490,835
Selected Financial Data (US$)
Total CVS Health shareholders’ equity (in millions)	63,864	58,225	37,691	36,830	37,196
Book value per share (BVPS)²	48.97	44.89	37.15	35.91	33.86
Share price^1, 3	72.00	57.83	69.79	77.31	90.51
Valuation Ratio
P/BV ratio⁴	1.47	1.29	1.88	2.15	2.67
Benchmarks
P/BV Ratio, Competitors⁵
Walgreens Boots Alliance Inc.	2.12	2.59	2.55	2.94	3.00
P/BV Ratio, Sector
Food & Drug Retailers	1.64	1.69	2.16	2.50	2.82
P/BV Ratio, Industry
Consumer Services	6.54	6.15	6.17	5.29	5.31

Based on: 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), 10-K (filing date: 2016-02-09).

¹ Data adjusted for splits and stock dividends.

² 2019 Calculation
BVPS = Total CVS Health shareholders’ equity ÷ No. shares of common stock outstanding
= 63,864,000,000 ÷ 1,304,159,680 = 48.97

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

⁴ 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 72.00 ÷ 48.97 = 1.47

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’s required rate of return and its actual rate of return.	CVS Health Corp.’s P/BV ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

CVS Health Corp. (NYSE:CVS)

Common Stock Valuation Ratios (Price Multiples)

Current Valuation Ratios

Historical Valuation Ratios (Summary)

Price to Earnings (P/E)

Price to Operating Profit (P/OP)

Price to Sales (P/S)

Price to Book Value (P/BV)