CVS Health Corporation

XTRA:CVS Stock Report

Market Cap: €63.6b

CVS Health Valuation

Is CVS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 (€53.2) is trading below our estimate of fair value (€205.84)

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.

The above table shows the Price to Earnings ratio for CVS. This is calculated by dividing CVS's market cap by their current earnings.
What is CVS's PE Ratio?
PE Ratio13.3x
EarningsUS$5.02b
Market CapUS$66.93b

Price to Earnings Ratio vs Peers

How does CVS's PE Ratio compare to its peers?

The above table shows the PE ratio for CVS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.2x
FME Fresenius Medical Care
18.6x19.3%€12.2b
SYAB SYNLAB
28.3x-11.4%€2.5b
SHL Siemens Healthineers
28.3x14.2%€55.0b
CI Cigna Group
29.5x24.4%US$89.4b
CVS CVS Health
14.1x17.5%€66.9b

Price-To-Earnings vs Peers: CVS is good value based on its Price-To-Earnings Ratio (14.1x) compared to the peer average (26.2x).

Price to Earnings Ratio vs Industry

How does CVS's PE Ratio compare vs other companies in the European Healthcare Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CVS 13.3xIndustry Avg. 18.2xNo. of Companies8PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CVS is good value based on its Price-To-Earnings Ratio (14.1x) compared to the European Healthcare industry average (18.2x).

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.

CVS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.3x
Fair PE Ratio37.1x

Price-To-Earnings vs Fair Ratio: CVS is good value based on its Price-To-Earnings Ratio (14.1x) compared to the estimated Fair Price-To-Earnings Ratio (37.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CVS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€51.80
€64.39
+24.3%
14.4%€86.22€54.70n/a25
Oct ’25€55.52
€60.07
+8.2%
14.0%€83.22€52.79n/a25
Sep ’25€51.49
€60.10
+16.7%
13.0%€83.10€52.72n/a25
Aug ’25€55.65
€62.66
+12.6%
13.1%€86.03€53.65n/a25
Jul ’25€55.02
€64.35
+17.0%
13.4%€86.61€54.95n/a26
Jun ’25€52.98
€63.62
+20.1%
13.5%€85.73€54.39n/a26
May ’25€63.52
€79.21
+24.7%
10.8%€94.47€56.12n/a26
Apr ’25€73.80
€81.91
+11.0%
7.5%€94.31€70.50n/a26
Mar ’25€68.20
€83.03
+21.7%
7.0%€95.30€71.24n/a25
Feb ’25€68.14
€83.22
+22.1%
7.4%€95.46€73.43n/a24
Jan ’25€71.48
€80.28
+12.3%
8.6%€94.43€69.01n/a24
Dec ’24€62.98
€80.74
+28.2%
9.2%€95.52€69.81n/a23
Nov ’24€64.32
€85.35
+32.7%
10.4%€104.09€71.92€51.8023
Oct ’24€66.40
€86.55
+30.3%
10.3%€104.08€71.91€55.5224
Sep ’24€60.84
€85.69
+40.8%
9.8%€102.11€70.55€51.4924
Aug ’24€67.38
€85.86
+27.4%
12.2%€109.26€65.56€55.6523
Jul ’24€63.34
€91.39
+44.3%
16.6%€131.57€69.93€55.0224
Jun ’24€64.62
€93.41
+44.6%
16.6%€133.29€70.84€52.9823
May ’24€66.56
€99.52
+49.5%
13.3%€130.34€78.39€63.5222
Apr ’24€68.58
€103.83
+51.4%
10.0%€131.12€87.11€73.8021
Mar ’24€77.34
€107.57
+39.1%
9.4%€134.88€89.60€68.2021
Feb ’24€80.37
€108.31
+34.8%
6.5%€120.47€92.67€68.1423
Jan ’24€87.52
€112.17
+28.2%
4.9%€123.16€100.42€71.4823
Dec ’23€96.59
€114.03
+18.1%
4.9%€124.98€101.91€62.9823
Nov ’23€95.72
€122.05
+27.5%
5.8%€132.87€102.21€64.3223

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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