Common Stock Valuation Ratios (Price Multiples)
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).
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CVS Health Corp. pages available for free this week:
- Balance Sheet: Assets
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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Current Valuation Ratios
CVS Health Corp., current price multiples
| CVS Health Corp. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | Health Care Equipment & Services | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | |||||||||||
| No. shares of common stock outstanding | |||||||||||
| Growth rate (g) | |||||||||||
| Earnings per share (EPS) | |||||||||||
| Next year expected EPS | |||||||||||
| Operating profit per share | |||||||||||
| Sales per share | |||||||||||
| Book value per share (BVPS) | |||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | |||||||||||
| Price to next year expected earnings | |||||||||||
| Price-earnings-growth (PEG) | |||||||||||
| Price to operating profit (P/OP) | |||||||||||
| Price to sales (P/S) | |||||||||||
| Price to book value (P/BV) | |||||||||||
Based on: 10-K (reporting date: 2024-12-31).
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
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2024-12-31), 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).
- Price to Earnings (P/E) Ratio
- The price to earnings ratio exhibits notable fluctuations over the five-year period. It increases significantly from 12.88 in 2020 to a peak of 27.53 in 2022, indicating heightened market expectations or earnings volatility during this time. Subsequently, the ratio declines sharply to 11.47 in 2023, before rising again to 17.28 in 2024. This indicates intermittent market optimism and varying perceived profitability or risk.
- Price to Operating Profit (P/OP) Ratio
- This ratio shows a similar pattern to the P/E ratio, increasing steadily from 6.65 in 2020 to 14.75 in 2022. Following this peak, there is a marked decrease to 6.96 in 2023, accompanied by a moderate increase to 9.36 in 2024. The trend suggests fluctuating valuation levels relative to operating profit, mirroring shifts in operational performance or investor sentiment.
- Price to Sales (P/S) Ratio
- The price to sales ratio demonstrates a downward trend after an initial increase from 0.35 in 2020 to 0.47 in 2021. It then declines consistently through subsequent years to reach 0.22 by 2024. This consistent decrease implies diminishing market valuation relative to sales, which may point to slowing growth prospects or increased competitive pressure affecting sales value.
- Price to Book Value (P/BV) Ratio
- The price to book value ratio rises from 1.33 in 2020 to 1.83 in 2021, then gradually declines over the following years down to 1.05 in 2024. This decline indicates a reduction in market valuation relative to the company's net asset value, potentially reflecting investor caution or reassessment of the company’s asset quality or growth potential.
Price to Earnings (P/E)
CVS Health Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income attributable to CVS Health (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | ||||||
| P/E Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income attributable to CVS Health ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of CVS Health Corp. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited notable volatility over the five-year period. It increased significantly from $70.53 at the end of 2020 to a peak of $104.79 by the end of 2021. Subsequently, there was a downward trend with the price declining to $88.96 in 2022, further to $76.05 in 2023, and finally reaching $63.22 by the end of 2024, representing an overall decline from the initial peak.
- Earnings per Share (EPS) Development
- EPS showed fluctuations over the years. Beginning at $5.47 in 2020, EPS steadily rose to $6.03 in 2021. However, a sharp decline to $3.23 occurred in 2022, followed by a rebound to $6.63 in 2023. Another decrease to $3.66 was observed in 2024. This pattern suggests instability in net earnings relative to the number of outstanding shares across the analyzed timeframe.
- Price-to-Earnings (P/E) Ratio Dynamics
- The P/E ratio varied considerably. It increased from 12.88 in 2020 to 17.39 in 2021, and then sharply climbed to 27.53 in 2022, coinciding with the EPS dip, indicating a higher price relative to earnings. In 2023, the ratio significantly decreased to 11.47, reflecting a lower price relative to earnings due to the EPS increase. By 2024, the P/E ratio rose again to 17.28, aligning with the decline in EPS and share price.
- Overall Insights
- The data reveals an overall pattern of considerable volatility in share price, EPS, and P/E ratio. Periods of declining earnings per share correspond with increased P/E ratios, suggesting market valuation volatility relative to earnings performance. The fluctuating EPS and share price indicate variable profitability and possibly external factors affecting the company's market valuation across the five years.
Price to Operating Profit (P/OP)
CVS Health Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | ||||||
| P/OP Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of CVS Health Corp. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price experienced significant fluctuations during the period under review. It increased notably from $70.53 in 2020 to a peak of $104.79 in 2021, indicating a strong positive market sentiment or improved company prospects at that time. Subsequently, the share price trended downward, declining to $88.96 in 2022, further to $76.05 in 2023, and reaching $63.22 in 2024, marking a consistent decrease over the last three years.
- Operating Profit per Share
- The operating profit per share showed a mixed trend. It declined from $10.61 in 2020 to $10.05 in 2021, followed by a more pronounced drop to $6.03 in 2022. However, it rebounded sharply to $10.92 in 2023, suggesting improved operational efficiency or profitability during that year. This recovery was not sustained, as the operating profit per share fell again to $6.75 in 2024, indicating potential volatility or challenges impacting profitability.
- Price to Operating Profit Ratio (P/OP)
- The price to operating profit ratio demonstrated considerable variability. Starting at 6.65 in 2020, it increased significantly to 10.43 in 2021 and further to 14.75 in 2022, suggesting the market was valuing the company more highly relative to its operating profit during these years. In 2023, the ratio decreased sharply to 6.96, aligning with the rebound in operating profit per share and the fall in share price. In 2024, the ratio rose again to 9.36, reflecting a lower operating profit per share combined with a declining share price, implying fluctuating market perceptions of the company’s earnings potential.
- Overall Observations
- The analyzed period reveals volatility in both market valuation and operational profitability. Initial growth in share price and valuation ratios was offset by subsequent declines, with operating profit per share displaying inconsistent performance. The variability in the P/OP ratio underscores changing market expectations relative to operating profits. This pattern suggests the company faced periods of both strength and challenge, impacting investor confidence and financial performance metrics in a fluctuating manner over the five-year timeframe.
Price to Sales (P/S)
CVS Health Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenues from customers (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | ||||||
| P/S Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Revenues from customers ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of CVS Health Corp. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price showed an initial increase from $70.53 in 2020 to a peak of $104.79 in 2021, followed by a consistent decline over the next three years, reaching $63.22 in 2024. This indicates a declining market valuation after 2021 despite other financial improvements.
- Sales per Share Trend
- Sales per share demonstrated steady growth throughout the entire period, increasing from $204.3 in 2020 to $293.99 in 2024. This suggests an improvement in business revenue generation on a per-share basis, reflecting potentially higher operational performance or increased sales volumes.
- Price-to-Sales (P/S) Ratio Trend
- The P/S ratio initially rose from 0.35 in 2020 to 0.47 in 2021 but then declined sharply to 0.22 by 2024. This decline, in conjunction with the declining share price and rising sales per share, indicates the market is valuing the company less highly relative to its sales revenue over time.
- Overall Insights
- The data reveals a disconnect between improving sales performance and declining market valuation starting after 2021. While operational metrics such as sales per share exhibit positive momentum, market sentiment appears to have weakened, as reflected in the falling share price and decreasing P/S ratio. This pattern could suggest investor concerns unrelated to sales growth, such as profitability, market conditions, or external risk factors.
Price to Book Value (P/BV)
CVS Health Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total CVS Health shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | ||||||
| P/BV Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Total CVS Health shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of CVS Health Corp. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price experienced an initial increase from $70.53 in 2020 to a peak of $104.79 in 2021. Subsequently, it declined steadily each year, reaching $63.22 by 2024. This indicates a significant decrease in market valuation over the later periods following the initial growth.
- Book Value per Share (BVPS)
- The book value per share showed moderate fluctuations over the five-year period. It rose from $52.91 in 2020 to $57.20 in 2021, dipped slightly to $55.30 in 2022, increased again to $60.76 in 2023, and then decreased marginally to $59.93 in 2024. Overall, BVPS demonstrated a general upward trend with some volatility.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio peaked at 1.83 in 2021, reflecting a relatively high market valuation compared to book value per share. After this peak, there was a steady decline to 1.05 in 2024, suggesting that the market price moved closer to the intrinsic book value over time. This decline aligns with the decreasing trend in share price despite the relatively stable book value.