CVS Health Valuation
Is CVS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast
Share Price vs Fair Value
What is the Fair Price of CVS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CVS (CHF47.4) is trading below our estimate of fair value (CHF198.74)
Significantly Below Fair Value: CVS is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CVS?
Key metric: As CVS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is CVS's PE Ratio? | |
|---|---|
| PE Ratio | 15.1x |
| Earnings | US$5.02b |
| Market Cap | US$75.61b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.4x |
| Enterprise Value/EBITDA | 10.5x |
| PEG Ratio | 0.8x |
Price to Earnings Ratio vs Peers
How does CVS's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 40.5x | ||
ALC Alcon | 37.3x | 9.8% | CHF 38.4b |
STMN Straumann Holding | 61.9x | 20.9% | CHF 17.8b |
SOON Sonova Holding | 32.1x | 11.2% | CHF 18.2b |
CI Cigna Group | 30.7x | 24.4% | US$92.6b |
CVS CVS Health | 15.1x | 18.0% | CHF 75.6b |
Price-To-Earnings vs Peers: CVS is good value based on its Price-To-Earnings Ratio (15.1x) compared to the peer average (40.4x).
Price to Earnings Ratio vs Industry
How does CVS's PE Ratio compare vs other companies in the European Healthcare Industry?
| 2 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 2 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: CVS is good value based on its Price-To-Earnings Ratio (15.1x) compared to the European Healthcare industry average (18.8x).
Price to Earnings Ratio vs Fair Ratio
What is CVS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 15.1x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CVS's Price-To-Earnings Fair Ratio for valuation analysis.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | n/a | CHF 60.57 0% | 13.5% | CHF 82.42 | CHF 50.51 | n/a | 25 |
| Nov ’25 | CHF 50.23 | CHF 60.16 +19.8% | 14.4% | CHF 80.56 | CHF 51.11 | n/a | 25 |
| Oct ’25 | n/a | CHF 56.61 0% | 14.0% | CHF 78.42 | CHF 49.75 | n/a | 25 |
| Sep ’25 | n/a | CHF 57.02 0% | 13.0% | CHF 78.84 | CHF 50.02 | n/a | 25 |
| Aug ’25 | CHF 55.91 | CHF 59.88 +7.1% | 13.1% | CHF 82.21 | CHF 51.27 | n/a | 25 |
| Jul ’25 | n/a | CHF 61.08 0% | 13.4% | CHF 82.22 | CHF 52.16 | n/a | 26 |
| Jun ’25 | n/a | CHF 62.27 0% | 13.5% | CHF 83.91 | CHF 53.23 | n/a | 26 |
| May ’25 | n/a | CHF 77.84 0% | 10.8% | CHF 92.83 | CHF 55.15 | n/a | 26 |
| Apr ’25 | n/a | CHF 79.32 0% | 7.5% | CHF 91.33 | CHF 68.28 | n/a | 26 |
| Mar ’25 | n/a | CHF 79.36 0% | 7.0% | CHF 91.08 | CHF 68.09 | n/a | 25 |
| Feb ’25 | CHF 64.42 | CHF 78.72 +22.2% | 7.4% | CHF 90.30 | CHF 69.46 | n/a | 24 |
| Jan ’25 | CHF 66.87 | CHF 75.64 +13.1% | 8.6% | CHF 88.98 | CHF 65.02 | n/a | 24 |
| Dec ’24 | n/a | CHF 77.69 0% | 9.2% | CHF 91.91 | CHF 67.17 | n/a | 23 |
| Nov ’24 | n/a | CHF 81.88 0% | 10.4% | CHF 99.86 | CHF 68.99 | CHF 50.23 | 23 |
| Oct ’24 | n/a | CHF 83.74 0% | 10.3% | CHF 100.71 | CHF 69.58 | n/a | 24 |
| Sep ’24 | n/a | CHF 81.78 0% | 9.8% | CHF 97.45 | CHF 67.33 | n/a | 24 |
| Aug ’24 | CHF 65.77 | CHF 82.54 +25.5% | 12.2% | CHF 105.03 | CHF 63.02 | CHF 55.91 | 23 |
| Jul ’24 | n/a | CHF 89.37 0% | 16.6% | CHF 128.66 | CHF 68.38 | n/a | 24 |
| Jun ’24 | n/a | CHF 90.77 0% | 16.6% | CHF 129.52 | CHF 68.84 | n/a | 23 |
| May ’24 | n/a | CHF 97.85 0% | 13.3% | CHF 128.16 | CHF 77.07 | n/a | 22 |
| Apr ’24 | n/a | CHF 103.50 0% | 10.0% | CHF 130.71 | CHF 86.83 | n/a | 21 |
| Mar ’24 | n/a | CHF 106.24 0% | 9.4% | CHF 133.21 | CHF 88.49 | n/a | 21 |
| Feb ’24 | n/a | CHF 107.15 0% | 6.5% | CHF 119.19 | CHF 91.68 | CHF 64.42 | 23 |
| Jan ’24 | n/a | CHF 110.83 0% | 4.9% | CHF 121.69 | CHF 99.23 | CHF 66.87 | 23 |
| Dec ’23 | n/a | CHF 111.73 0% | 4.9% | CHF 122.46 | CHF 99.85 | n/a | 23 |
| Nov ’23 | n/a | CHF 119.89 0% | 5.8% | CHF 130.53 | CHF 100.41 | n/a | 23 |
Analyst Forecast: Target price is less than 20% higher than the current share price.
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