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).
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) | $69.45 | ||||||||||
| No. shares of common stock outstanding | 1,265,019,429 | ||||||||||
| Growth rate (g) | 4.46% | ||||||||||
| Earnings per share (EPS) | $3.65 | ||||||||||
| Next year expected EPS | $3.81 | ||||||||||
| Operating profit per share | $6.73 | ||||||||||
| Sales per share | $293.00 | ||||||||||
| Book value per share (BVPS) | $59.73 | ||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | 19.04 | 29.02 | 15.79 | 53.50 | 26.34 | 30.11 | 23.15 | 49.81 | |||
| Price to next year expected earnings | 18.23 | 26.91 | 14.12 | 46.91 | 25.99 | 26.82 | 20.91 | 45.40 | |||
| Price-earnings-growth (PEG) | 4.27 | 3.70 | 1.34 | 3.81 | 19.23 | 2.46 | 2.16 | 5.13 | |||
| Price to operating profit (P/OP) | 10.32 | 23.51 | 13.60 | 51.87 | 19.56 | 19.14 | 17.09 | 35.24 | |||
| Price to sales (P/S) | 0.24 | 4.27 | 0.45 | 15.18 | 3.48 | 0.82 | 1.41 | 4.40 | |||
| Price to book value (P/BV) | 1.16 | 3.63 | 2.04 | 8.57 | 2.56 | 3.86 | 3.71 | 7.84 | |||
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
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).
The valuation multiples for the period ending December 31, 2024, reveal a transition from a period of expansion to one of contraction and stabilization. A distinct volatility is observed in profitability-based metrics, whereas sales and asset-based multiples demonstrate a more linear downward trajectory.
- Profitability-Based Ratios (P/E and P/OP)
- Both the Price to Earnings (P/E) and Price to Operating Profit (P/OP) ratios exhibit a synchronized trend. A significant expansion occurred through 2022, with the P/E ratio peaking at 27.53 and the P/OP ratio reaching 14.75. This was followed by a sharp contraction in 2023, where the P/E ratio fell to 11.47 and the P/OP ratio dropped to 6.96. By 2024, a partial recovery was observed, with the P/E ratio rising to 17.28 and the P/OP ratio increasing to 9.36.
- Price to Sales (P/S) Ratio
- A persistent downward trend is evident in the Price to Sales ratio following a brief increase in 2021. From a peak of 0.47 in 2021, the ratio declined steadily to 0.22 by December 31, 2024. This indicates a consistent decrease in the market valuation relative to the entity's top-line revenue generation over the analyzed period.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio experienced a peak of 1.83 in 2021, followed by a gradual and consistent decline over the subsequent three years. The ratio concluded the period at 1.05 in 2024, suggesting that the market valuation has converged toward the company's accounting book value.
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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 | 1,260,795,063 | 1,258,449,553 | 1,284,111,667 | 1,312,510,426 | 1,311,354,926 | |
| Selected Financial Data (US$) | ||||||
| Net income attributable to CVS Health (in millions) | 4,614) | 8,344) | 4,149) | 7,910) | 7,179) | |
| Earnings per share (EPS)2 | 3.66 | 6.63 | 3.23 | 6.03 | 5.47 | |
| Share price1, 3 | 63.22 | 76.05 | 88.96 | 104.79 | 70.53 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 17.28 | 11.47 | 27.53 | 17.39 | 12.88 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Abbott Laboratories | 17.46 | 34.57 | 26.76 | 29.13 | — | |
| Elevance Health Inc. | 14.85 | 19.80 | 19.20 | 18.13 | — | |
| Intuitive Surgical Inc. | 87.82 | 74.11 | 64.99 | 59.94 | — | |
| Medtronic PLC | 27.97 | 30.94 | 23.38 | 46.56 | — | |
| UnitedHealth Group Inc. | 29.75 | 20.53 | 22.46 | 26.03 | — | |
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | 26.60 | 25.86 | 24.26 | 28.98 | — | |
| P/E Ratio, Industry | ||||||
| Health Care | 38.03 | 30.62 | 21.22 | 21.55 | — | |
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
= 4,614,000,000 ÷ 1,260,795,063 = 3.66
3 Closing price as at the filing date of CVS Health Corp. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 63.22 ÷ 3.66 = 17.28
5 Click competitor name to see calculations.
The five-year financial period is characterized by significant volatility in both valuation multiples and bottom-line earnings, accompanied by a sustained downward trajectory in market price following a peak in 2021.
- Share Price Evolution
- A sharp increase is observed from 70.53 US$ in 2020 to a peak of 104.79 US$ in 2021. Following this peak, a consistent annual decline occurred, with the price falling to 88.96 US$ in 2022, 76.05 US$ in 2023, and ultimately reaching 63.22 US$ by December 31, 2024.
- Earnings per Share (EPS) Volatility
- Earnings exhibited substantial fluctuations throughout the period. After a modest increase to 6.03 US$ in 2021, EPS contracted sharply to 3.23 US$ in 2022. A significant recovery followed in 2023, with earnings reaching a period high of 6.63 US$, before another steep decline to 3.66 US$ in 2024.
- Price-to-Earnings (P/E) Ratio Dynamics
- The P/E ratio demonstrated an inverse relationship with earnings volatility. The multiple peaked at 27.53 in 2022, a result of the sharp decline in EPS while the share price remained relatively elevated. This shifted in 2023, where the ratio dropped to its lowest level of 11.47 as EPS peaked. By 2024, the P/E ratio adjusted to 17.28, reflecting a simultaneous compression of both share price and earnings.
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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 | 1,260,795,063 | 1,258,449,553 | 1,284,111,667 | 1,312,510,426 | 1,311,354,926 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 8,516) | 13,743) | 7,746) | 13,193) | 13,911) | |
| Operating profit per share2 | 6.75 | 10.92 | 6.03 | 10.05 | 10.61 | |
| Share price1, 3 | 63.22 | 76.05 | 88.96 | 104.79 | 70.53 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 9.36 | 6.96 | 14.75 | 10.43 | 6.65 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Abbott Laboratories | 34.28 | 30.54 | 22.18 | 24.45 | — | |
| Elevance Health Inc. | 12.19 | 15.57 | 15.05 | 15.70 | — | |
| Intuitive Surgical Inc. | 86.83 | 75.42 | 54.49 | 56.11 | — | |
| Medtronic PLC | 19.98 | 21.20 | 20.48 | 37.44 | — | |
| UnitedHealth Group Inc. | 13.27 | 14.20 | 15.89 | 18.77 | — | |
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | 19.64 | 19.09 | 18.47 | 22.66 | — | |
| P/OP Ratio, Industry | ||||||
| Health Care | 26.90 | 27.48 | 16.58 | 18.20 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 8,516,000,000 ÷ 1,260,795,063 = 6.75
3 Closing price as at the filing date of CVS Health Corp. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 63.22 ÷ 6.75 = 9.36
5 Click competitor name to see calculations.
An analysis of the valuation multiples between 2020 and 2024 reveals significant volatility in both market pricing and operational profitability, leading to inconsistent Price to Operating Profit (P/OP) ratios.
- Share Price Trend
- The share price experienced a sharp increase from 70.53 US$ in 2020 to a peak of 104.79 US$ in 2021. Following this peak, a consistent downward trajectory is observed, with the price declining annually to reach 63.22 US$ by December 31, 2024, representing a significant reduction in market capitalization over the final three years of the period.
- Operating Profit per Share (OPPS)
- Operational earnings per share exhibited substantial instability. After remaining relatively stable between 2020 and 2021, OPPS dropped sharply to 6.03 US$ in 2022. A strong recovery occurred in 2023, reaching a five-year high of 10.92 US$, before declining again to 6.75 US$ in 2024.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio fluctuated in response to the diverging movements of share price and operating profit. The ratio peaked at 14.75 in 2022; this expansion was driven primarily by a contraction in operating profit rather than an increase in share price. Conversely, the ratio compressed to 6.96 in 2023, reflecting the combined effect of a falling share price and a recovery in operating profit. By 2024, the ratio rose to 9.36, indicating that the decline in operating profit outpaced the decline in share price during that period.
The data indicates a lack of stable correlation between operational performance and market valuation, with the P/OP ratio reflecting high sensitivity to short-term fluctuations in operating profit.
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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 | 1,260,795,063 | 1,258,449,553 | 1,284,111,667 | 1,312,510,426 | 1,311,354,926 | |
| Selected Financial Data (US$) | ||||||
| Revenues from customers (in millions) | 370,656) | 356,623) | 321,629) | 290,912) | 267,908) | |
| Sales per share2 | 293.99 | 283.38 | 250.47 | 221.65 | 204.30 | |
| Share price1, 3 | 63.22 | 76.05 | 88.96 | 104.79 | 70.53 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 0.22 | 0.27 | 0.36 | 0.47 | 0.35 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Abbott Laboratories | 5.58 | 4.93 | 4.25 | 4.78 | — | |
| Elevance Health Inc. | 0.51 | 0.70 | 0.74 | 0.81 | — | |
| Intuitive Surgical Inc. | 24.42 | 18.71 | 13.81 | 17.89 | — | |
| Medtronic PLC | 3.18 | 3.72 | 3.72 | 5.57 | — | |
| UnitedHealth Group Inc. | 1.08 | 1.25 | 1.40 | 1.58 | — | |
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.62 | 1.66 | 1.71 | 2.07 | — | |
| P/S Ratio, Industry | ||||||
| Health Care | 3.36 | 3.52 | 3.11 | 3.28 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Revenues from customers ÷ No. shares of common stock outstanding
= 370,656,000,000 ÷ 1,260,795,063 = 293.99
3 Closing price as at the filing date of CVS Health Corp. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 63.22 ÷ 293.99 = 0.22
5 Click competitor name to see calculations.
An analysis of the valuation multiples reveals a significant divergence between top-line operational growth and market valuation from 2020 through 2024. While revenue generation per share has increased consistently, the market's valuation of those sales has experienced a sustained contraction following a peak in 2021.
- Share Price Volatility
- The share price exhibited an initial increase between 2020 and 2021, rising from US$ 70.53 to a peak of US$ 104.79. Following this peak, a consistent downward trend is observed, with the price declining over three consecutive years to end at US$ 63.22 by December 31, 2024.
- Sales per Share Expansion
- A steady upward trajectory is evident in sales per share, which grew every year throughout the analyzed period. From a base of US$ 204.30 in 2020, the figure rose to US$ 293.99 by 2024, indicating a consistent increase in the volume of revenue attributable to each share of common stock.
- Price-to-Sales (P/S) Ratio Compression
- The P/S ratio peaked at 0.47 in 2021, coinciding with the highest recorded share price. Subsequently, the ratio declined steadily, reaching 0.22 by the end of 2024. This compression indicates that the market is assigning a progressively lower multiple to the company's revenue. The fact that the P/S ratio fell despite rising sales per share suggests that the decline in share price has significantly outpaced the growth in revenue, reflecting a reduction in the market's valuation of each dollar of sales generated.
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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 | 1,260,795,063 | 1,258,449,553 | 1,284,111,667 | 1,312,510,426 | 1,311,354,926 | |
| Selected Financial Data (US$) | ||||||
| Total CVS Health shareholders’ equity (in millions) | 75,560) | 76,461) | 71,015) | 75,075) | 69,389) | |
| Book value per share (BVPS)2 | 59.93 | 60.76 | 55.30 | 57.20 | 52.91 | |
| Share price1, 3 | 63.22 | 76.05 | 88.96 | 104.79 | 70.53 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 1.05 | 1.25 | 1.61 | 1.83 | 1.33 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Abbott Laboratories | 4.91 | 5.12 | 5.06 | 5.75 | — | |
| Elevance Health Inc. | 2.15 | 3.02 | 3.19 | 3.07 | — | |
| Intuitive Surgical Inc. | 12.41 | 10.01 | 7.78 | 8.59 | — | |
| Medtronic PLC | 2.05 | 2.26 | 2.24 | 3.26 | — | |
| UnitedHealth Group Inc. | 4.63 | 5.18 | 5.81 | 6.27 | — | |
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | 4.26 | 4.43 | 4.46 | 5.01 | — | |
| P/BV Ratio, Industry | ||||||
| Health Care | 5.99 | 5.94 | 5.26 | 5.48 | — | |
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
= 75,560,000,000 ÷ 1,260,795,063 = 59.93
3 Closing price as at the filing date of CVS Health Corp. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 63.22 ÷ 59.93 = 1.05
5 Click competitor name to see calculations.
An analysis of valuation multiples between 2020 and 2024 reveals a significant compression in the Price to Book Value (P/BV) ratio. While the underlying accounting value per share remained relatively resilient, the market valuation experienced a sustained decline after a peak in 2021, leading to a narrowing gap between the market price and the book value.
- Share Price Volatility
- The share price exhibited a sharp increase from $70.53 in 2020 to a peak of $104.79 in 2021. Following this peak, a consistent downward trend is observed, with the price declining for three consecutive years to reach $63.22 by December 31, 2024.
- Book Value Per Share (BVPS) Performance
- BVPS demonstrated a general upward trajectory and relative stability. From a baseline of $52.91 in 2020, the value rose to a peak of $60.76 in 2023, before ending the period at $59.93 in 2024. This indicates that the company's net asset value per share grew despite the fluctuations in market pricing.
- P/BV Ratio Trend
- The P/BV ratio mirrored the movement of the share price, peaking at 1.83 in 2021. A steady contraction followed, with the ratio falling to 1.61 in 2022, 1.25 in 2023, and finally to 1.05 in 2024. This trend signifies a reduction in the premium that investors are willing to pay over the company's book value.
- Valuation Insight
- The divergence between the increasing BVPS and the decreasing share price underscores that the P/BV compression is driven by market sentiment rather than a deterioration of the balance sheet. By the end of 2024, the P/BV ratio of 1.05 suggests the equity is trading very close to its accounting value, indicating a highly conservative market valuation.
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