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

CVS Health Corp. (NYSE:CVS)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

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

CVS Health Corp., current price multiples

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CVS Health Corp. Consumer Services
Selected Financial Data
Current share price (P) $69.64
No. shares of common stock outstanding 1,311,354,926
Growth rate (g) 8.32%
 
Earnings per share (EPS) $5.47
Next year expected EPS $5.93
Operating profit per share $10.61
Sales per share $204.30
Book value per share (BVPS) $52.91
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 12.72 45.86
Price to next year expected earnings 11.74 39.78
Price-earnings-growth (PEG) 1.53 3.00
Price to operating profit (P/OP) 6.56 29.49
Price to sales (P/S) 0.34 2.31
Price to book value (P/BV) 1.32 9.55

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

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

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Price to earnings (P/E) 12.88 14.15 10.69 14.91
Price to operating profit (P/OP) 6.65 7.83 18.65 7.44 7.65
Price to sales (P/S) 0.35 0.37 0.39 0.38 0.45
Price to book value (P/BV) 1.33 1.47 1.29 1.88 2.15

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).

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 decreased from 2018 to 2019 and from 2019 to 2020.
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 decreased from 2018 to 2019 and from 2019 to 2020.
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 increased from 2018 to 2019 but then slightly decreased from 2019 to 2020 not reaching 2018 level.

Price to Earnings (P/E)

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

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 1,311,354,926 1,304,159,680 1,297,082,165 1,014,532,157 1,025,699,605
Selected Financial Data (US$)
Net income (loss) attributable to CVS Health (in millions) 7,179  6,634  (594) 6,622  5,317 
Earnings per share (EPS)2 5.47 5.09 -0.46 6.53 5.18
Share price1, 3 70.53 72.00 57.83 69.79 77.31
Valuation Ratio
P/E ratio4 12.88 14.15 10.69 14.91
Benchmarks
P/E Ratio, Industry
Consumer Services 32.56 29.96 23.68 25.70

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 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Net income (loss) attributable to CVS Health ÷ No. shares of common stock outstanding
= 7,179,000,000 ÷ 1,311,354,926 = 5.47

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

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 70.53 ÷ 5.47 = 12.88


Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 1,311,354,926 1,304,159,680 1,297,082,165 1,014,532,157 1,025,699,605
Selected Financial Data (US$)
Operating income (in millions) 13,911  11,987  4,021  9,517  10,366 
Operating profit per share2 10.61 9.19 3.10 9.38 10.11
Share price1, 3 70.53 72.00 57.83 69.79 77.31
Valuation Ratio
P/OP ratio4 6.65 7.83 18.65 7.44 7.65
Benchmarks
P/OP Ratio, Industry
Consumer Services 20.93 18.87 18.08 15.67

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 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 13,911,000,000 ÷ 1,311,354,926 = 10.61

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

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 70.53 ÷ 10.61 = 6.65

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 decreased from 2018 to 2019 and from 2019 to 2020.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 1,311,354,926 1,304,159,680 1,297,082,165 1,014,532,157 1,025,699,605
Selected Financial Data (US$)
Revenues from customers (in millions) 267,908  255,765  193,919  184,765  177,526 
Sales per share2 204.30 196.11 149.50 182.12 173.08
Share price1, 3 70.53 72.00 57.83 69.79 77.31
Valuation Ratio
P/S ratio4 0.35 0.37 0.39 0.38 0.45
Benchmarks
P/S Ratio, Industry
Consumer Services 1.64 1.52 1.51 1.32

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 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Revenues from customers ÷ No. shares of common stock outstanding
= 267,908,000,000 ÷ 1,311,354,926 = 204.30

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

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 70.53 ÷ 204.30 = 0.35

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 decreased from 2018 to 2019 and from 2019 to 2020.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 1,311,354,926 1,304,159,680 1,297,082,165 1,014,532,157 1,025,699,605
Selected Financial Data (US$)
Total CVS Health shareholders’ equity (in millions) 69,389  63,864  58,225  37,691  36,830 
Book value per share (BVPS)2 52.91 48.97 44.89 37.15 35.91
Share price1, 3 70.53 72.00 57.83 69.79 77.31
Valuation Ratio
P/BV ratio4 1.33 1.47 1.29 1.88 2.15
Benchmarks
P/BV Ratio, Industry
Consumer Services 6.78 6.39 6.46 5.50

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 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Total CVS Health shareholders’ equity ÷ No. shares of common stock outstanding
= 69,389,000,000 ÷ 1,311,354,926 = 52.91

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

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 70.53 ÷ 52.91 = 1.33

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 increased from 2018 to 2019 but then slightly decreased from 2019 to 2020 not reaching 2018 level.