CVS Health Corporation

XTRA:CVS Stock Report

Market Cap: €53.5b

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 (€42.58) is trading below our estimate of fair value (€226.08)

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 Ratio11.1x
EarningsUS$5.02b
Market CapUS$55.82b

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 Average25.6x
FME Fresenius Medical Care
19.5x19.3%€12.9b
SYAB SYNLAB
27.6x-11.4%€2.5b
SHL Siemens Healthineers
30x14.2%€58.3b
CI Cigna Group
25.3x24.2%US$76.4b
CVS CVS Health
11.1x18.7%€55.8b

Price-To-Earnings vs Peers: CVS is good value based on its Price-To-Earnings Ratio (11.1x) compared to the peer average (25.6x).

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 11.1xIndustry Avg. 18.0xNo. 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 (11.1x) compared to the European Healthcare industry average (18x).

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 Ratio11.1x
Fair PE Ratio37.5x

Price-To-Earnings vs Fair Ratio: CVS is good value based on its Price-To-Earnings Ratio (11.1x) compared to the estimated Fair Price-To-Earnings Ratio (37.5x).

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€42.58
€64.73
+52.0%
14.9%€89.70€49.19n/a25
Dec ’25€56.80
€65.12
+14.7%
13.5%€88.61€54.31n/a25
Nov ’25€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
€64.69
+17.6%
13.4%€87.08€55.24n/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€69.81€56.8023
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

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 00:44
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

CVS Health Corporation is covered by 63 analysts. 24 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Harshit GuptaAccountability Research Corporation
Christopher GrajaArgus Research Company
Samuel HudsonAtlantic Equities LLP