Stock Analysis on Net

CVS Health Corp. (NYSE:CVS)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel LibreOffice Calc

Current Valuation Ratios

CVS Health Corp., current price multiples

Microsoft Excel LibreOffice Calc
CVS Health Corp. Abbott Laboratories Anthem Inc. Bristol-Myers Squibb Co. Danaher Corp. Intuitive Surgical Inc. Medtronic PLC UnitedHealth Group Inc. Health Care Equipment & Services Health Care
Selected Financial Data
Current share price (P) $93.94
No. shares of common stock outstanding 1,311,309,074
Growth rate (g) 6.00%
 
Earnings per share (EPS) $6.03
Next year expected EPS $6.39
Operating profit per share $10.06
Sales per share $221.85
Book value per share (BVPS) $57.25
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 15.57 27.29 19.06 23.39 29.93 43.40 24.10 28.08 25.72 21.35
Price to next year expected earnings 14.69 26.32 17.03 23.70 27.49 37.86 23.50 24.05 24.08 19.70
Price-earnings-growth (PEG) 2.60 7.42 1.60 3.37 2.97 9.47 1.68 3.77 2.55
Price to operating profit (P/OP) 9.34 22.91 16.51 22.17 25.13 40.63 21.11 20.25 19.85 17.84
Price to sales (P/S) 0.42 4.48 0.85 3.53 6.37 12.96 3.83 1.70 1.69 2.81
Price to book value (P/BV) 1.64 5.39 3.23 4.55 4.15 6.22 2.31 6.76 4.03 5.38

Based on: 10-K (reporting date: 2021-12-31).

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Price to earnings (P/E) 17.39 12.88 14.15 10.69
Price to operating profit (P/OP) 10.43 6.65 7.83 18.65 7.44
Price to sales (P/S) 0.47 0.35 0.37 0.39 0.38
Price to book value (P/BV) 1.83 1.33 1.47 1.29 1.88

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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. P/E ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 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. P/OP ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 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. P/S ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. CVS Health Corp. P/BV ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 1,312,510,426 1,311,354,926 1,304,159,680 1,297,082,165 1,014,532,157
Selected Financial Data (US$)
Net income (loss) attributable to CVS Health (in millions) 7,910  7,179  6,634  (594) 6,622 
Earnings per share (EPS)2 6.03 5.47 5.09 -0.46 6.53
Share price1, 3 104.79 70.53 72.00 57.83 69.79
Valuation Ratio
P/E ratio4 17.39 12.88 14.15 10.69
Benchmarks
P/E Ratio, Competitors5
Abbott Laboratories 29.13 48.49 41.83 56.47 220.29
Anthem Inc. 18.13 15.87 15.96 21.45 15.44
Bristol-Myers Squibb Co. 20.92 41.99 16.81 103.55
Danaher Corp. 29.94 44.49 38.34 29.77 27.25
Intuitive Surgical Inc. 59.94 87.47 48.72 53.03 70.95
Medtronic PLC 46.56 26.30 28.78 37.80 29.96
UnitedHealth Group Inc. 26.03 20.54 20.48 21.09 20.77
P/E Ratio, Sector
Health Care Equipment & Services 26.49 37.78 25.77 30.05 26.75
P/E Ratio, Industry
Health Care 20.41 32.29 21.82 25.59 30.63

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
EPS = Net income (loss) attributable to CVS Health ÷ No. shares of common stock outstanding
= 7,910,000,000 ÷ 1,312,510,426 = 6.03

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

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 104.79 ÷ 6.03 = 17.39

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. P/E ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 1,312,510,426 1,311,354,926 1,304,159,680 1,297,082,165 1,014,532,157
Selected Financial Data (US$)
Operating income (in millions) 13,193  13,911  11,987  4,021  9,517 
Operating profit per share2 10.05 10.61 9.19 3.10 9.38
Share price1, 3 104.79 70.53 72.00 57.83 69.79
Valuation Ratio
P/OP ratio4 10.43 6.65 7.83 18.65 7.44
Benchmarks
P/OP Ratio, Competitors5
Abbott Laboratories 24.45 40.69 34.03 36.64 60.88
Anthem Inc. 15.70 12.10 13.55 15.87 14.81
Bristol-Myers Squibb Co. 19.84 24.42 16.16 28.87
Danaher Corp. 25.14 36.91 34.47 23.18 22.48
Intuitive Surgical Inc. 56.11 88.37 48.89 49.87 44.40
Medtronic PLC 37.44 26.29 21.26 17.64 22.64
UnitedHealth Group Inc. 18.77 14.12 14.40 14.58 14.42
P/OP Ratio, Sector
Health Care Equipment & Services 20.44 24.89 18.16 18.96 18.27
P/OP Ratio, Industry
Health Care 17.05 23.37 18.07 18.68 17.37

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 13,193,000,000 ÷ 1,312,510,426 = 10.05

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

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 104.79 ÷ 10.05 = 10.43

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. P/OP ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 1,312,510,426 1,311,354,926 1,304,159,680 1,297,082,165 1,014,532,157
Selected Financial Data (US$)
Revenues from customers (in millions) 290,912  267,908  255,765  193,919  184,765 
Sales per share2 221.65 204.30 196.11 149.50 182.12
Share price1, 3 104.79 70.53 72.00 57.83 69.79
Valuation Ratio
P/S ratio4 0.47 0.35 0.37 0.39 0.38
Benchmarks
P/S Ratio, Competitors5
Abbott Laboratories 4.78 6.30 4.83 4.37 3.84
Anthem Inc. 0.81 0.60 0.74 0.88 0.67
Bristol-Myers Squibb Co. 3.16 3.16 5.52 3.67 5.02
Danaher Corp. 6.37 7.01 6.29 3.97 3.70
Intuitive Surgical Inc. 17.89 21.29 15.01 16.06 14.97
Medtronic PLC 5.57 4.36 4.36 3.92 4.06
UnitedHealth Group Inc. 1.58 1.24 1.18 1.12 1.10
P/S Ratio, Sector
Health Care Equipment & Services 1.74 1.56 1.50 1.43 1.39
P/S Ratio, Industry
Health Care 2.68 2.67 2.52 2.50 2.48

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Sales per share = Revenues from customers ÷ No. shares of common stock outstanding
= 290,912,000,000 ÷ 1,312,510,426 = 221.65

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

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 104.79 ÷ 221.65 = 0.47

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. P/S ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 1,312,510,426 1,311,354,926 1,304,159,680 1,297,082,165 1,014,532,157
Selected Financial Data (US$)
Total CVS Health shareholders’ equity (in millions) 75,075  69,389  63,864  58,225  37,691 
Book value per share (BVPS)2 57.20 52.91 48.97 44.89 37.15
Share price1, 3 104.79 70.53 72.00 57.83 69.79
Valuation Ratio
P/BV ratio4 1.83 1.33 1.47 1.29 1.88
Benchmarks
P/BV Ratio, Competitors5
Abbott Laboratories 5.75 6.65 4.96 4.38 3.40
Anthem Inc. 3.07 2.19 2.42 2.82 2.24
Bristol-Myers Squibb Co. 4.07 3.55 2.80 5.89 8.88
Danaher Corp. 4.16 3.93 3.72 2.80 2.58
Intuitive Surgical Inc. 8.59 9.53 8.13 8.96 9.91
Medtronic PLC 3.26 2.48 2.66 2.31 2.40
UnitedHealth Group Inc. 6.27 4.83 4.92 4.89 4.59
P/BV Ratio, Sector
Health Care Equipment & Services 4.15 3.57 3.28 3.28 3.37
P/BV Ratio, Industry
Health Care 5.14 5.06 4.76 4.72 4.35

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
BVPS = Total CVS Health shareholders’ equity ÷ No. shares of common stock outstanding
= 75,075,000,000 ÷ 1,312,510,426 = 57.20

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

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 104.79 ÷ 57.20 = 1.83

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 required rate of return and its actual rate of return. CVS Health Corp. P/BV ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.