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)	$ 52.88
No. shares of common stock outstanding	1,299,092,100

Earnings per share (EPS)	$ -0.46
Operating profit per share	$ 3.10
Sales per share	$ 149.27
Book value per share (BVPS)	$ 44.82
Ratios (Price Multiples)
Price to operating profit (P/OP)	17.08	7.45	11.16	20.27
Price to sales (P/S)	0.35	0.36	0.36	1.62
Price to book value (P/BV)	1.18	1.84	1.38	6.86

Based on: 10-K (filing date: 2019-02-28).

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if 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, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Price to earnings (P/E)	–	10.69	14.91	18.98	24.64
Price to operating profit (P/OP)	18.65	7.44	7.65	10.49	13.00
Price to sales (P/S)	0.39	0.38	0.45	0.65	0.82
Price to book value (P/BV)	1.29	1.88	2.15	2.67	3.01

Based on: 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), 10-K (filing date: 2015-02-10).

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 declined from 2016 to 2017 and from 2017 to 2018.
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 declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 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 declined from 2016 to 2017 but then slightly increased from 2017 to 2018.
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 declined from 2016 to 2017 and from 2017 to 2018.

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

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
No. shares of common stock outstanding¹	1,297,082,165	1,014,532,157	1,025,699,605	1,098,490,835	1,125,252,739
Selected Financial Data (USD $)
Net income (loss) attributable to CVS Health (in millions)	(594)	6,622	5,317	5,237	4,644
Earnings per share (EPS)³	-0.46	6.53	5.18	4.77	4.13
Share price^1, 2	57.83	69.79	77.31	90.51	101.68
Ratio
P/E ratio⁴	–	10.69	14.91	18.98	24.64
Benchmarks
P/E Ratio, Competitors
Walgreens Boots Alliance Inc.	13.39	17.17	21.03	21.92	29.61
P/E Ratio, Sector
Food & Drug Retailers	32.12	13.16	17.60	20.29	26.10
P/E Ratio, Industry
Consumer Services	27.81	23.89	23.11	25.73	24.89

Based on: 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), 10-K (filing date: 2015-02-10).

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of CVS Health Corp.’s Annual Report.

2018 Calculations

³ EPS = Net income (loss) attributable to CVS Health ÷ No. shares of common stock outstanding
= -594,000,000 ÷ 1,297,082,165 = -0.46

⁴ P/E ratio = Share price ÷ EPS
= 57.83 ÷ -0.46 = –

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 declined from 2016 to 2017 and from 2017 to 2018.

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

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
No. shares of common stock outstanding¹	1,297,082,165	1,014,532,157	1,025,699,605	1,098,490,835	1,125,252,739
Selected Financial Data (USD $)
Operating income (in millions)	4,021	9,517	10,366	9,475	8,799
Operating profit per share³	3.10	9.38	10.11	8.63	7.82
Share price^1, 2	57.83	69.79	77.31	90.51	101.68
Ratio
P/OP ratio⁴	18.65	7.44	7.65	10.49	13.00
Benchmarks
P/OP Ratio, Competitors
Walgreens Boots Alliance Inc.	10.49	12.60	14.63	19.81	13.64
P/OP Ratio, Sector
Food & Drug Retailers	13.64	9.34	10.21	13.57	13.21
P/OP Ratio, Industry
Consumer Services	18.06	17.54	15.21	14.60	13.87

Based on: 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), 10-K (filing date: 2015-02-10).

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of CVS Health Corp.’s Annual Report.

2018 Calculations

³ Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 4,021,000,000 ÷ 1,297,082,165 = 3.10

⁴ P/OP ratio = Share price ÷ Operating profit per share
= 57.83 ÷ 3.10 = 18.65

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 declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

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

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
No. shares of common stock outstanding¹	1,297,082,165	1,014,532,157	1,025,699,605	1,098,490,835	1,125,252,739
Selected Financial Data (USD $)
Revenues from customers (in millions)	193,919	184,765	177,526	153,290	139,367
Sales per share³	149.50	182.12	173.08	139.55	123.85
Share price^1, 2	57.83	69.79	77.31	90.51	101.68
Ratio
P/S ratio⁴	0.39	0.38	0.45	0.65	0.82
Benchmarks
P/S Ratio, Competitors
Walgreens Boots Alliance Inc.	0.51	0.59	0.75	0.89	0.75
P/S Ratio, Sector
Food & Drug Retailers	0.44	0.46	0.57	0.75	0.80
P/S Ratio, Industry
Consumer Services	1.45	1.46	1.29	1.26	1.14

Based on: 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), 10-K (filing date: 2015-02-10).

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of CVS Health Corp.’s Annual Report.

2018 Calculations

³ Sales per share = Revenues from customers ÷ No. shares of common stock outstanding
= 193,919,000,000 ÷ 1,297,082,165 = 149.50

⁴ P/S ratio = Share price ÷ Sales per share
= 57.83 ÷ 149.50 = 0.39

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 declined from 2016 to 2017 but then slightly increased from 2017 to 2018.

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

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
No. shares of common stock outstanding¹	1,297,082,165	1,014,532,157	1,025,699,605	1,098,490,835	1,125,252,739
Selected Financial Data (USD $)
Total CVS Health shareholders’ equity (in millions)	58,225	37,691	36,830	37,196	37,958
Book value per share (BVPS)³	44.89	37.15	35.91	33.86	33.73
Share price^1, 2	57.83	69.79	77.31	90.51	101.68
Ratio
P/BV ratio⁴	1.29	1.88	2.15	2.67	3.01
Benchmarks
P/BV Ratio, Competitors
Walgreens Boots Alliance Inc.	2.59	2.55	2.94	3.00	2.80
P/BV Ratio, Sector
Food & Drug Retailers	1.69	2.16	2.50	2.82	2.94
P/BV Ratio, Industry
Consumer Services	6.12	6.14	5.19	5.34	4.40

Based on: 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), 10-K (filing date: 2015-02-10).

¹ Data adjusted for splits and stock dividends.

² Close price on the filing date of CVS Health Corp.’s Annual Report.

2018 Calculations

³ BVPS = Total CVS Health shareholders’ equity ÷ No. shares of common stock outstanding
= 58,225,000,000 ÷ 1,297,082,165 = 44.89

⁴ P/BV ratio = Share price ÷ BVPS
= 57.83 ÷ 44.89 = 1.29

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 declined from 2016 to 2017 and from 2017 to 2018.

CVS Health Corp. (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)