Cardinal Health Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 CAH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CAH ($104.37) is trading below our estimate of fair value ($270.23)

Significantly Below Fair Value: CAH is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for CAH?

Other financial metrics that can be useful for relative valuation.

CAH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.1x
Enterprise Value/EBITDA9.9x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CAH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.8x
COR Cencora
25.1x10.1%US$46.7b
MCK McKesson
26.1x9.6%US$78.4b
HSIC Henry Schein
24.6x24.7%US$8.7b
PDCO Patterson Companies
11.4x5.0%US$2.2b
CAH Cardinal Health
46.1x20.5%US$25.4b

Price-To-Earnings vs Peers: CAH is expensive based on its Price-To-Earnings Ratio (46.1x) compared to the peer average (21.8x).


Price to Earnings Ratio vs Industry

How does CAH's PE Ratio compare vs other companies in the US Healthcare Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CAH is expensive based on its Price-To-Earnings Ratio (46.1x) compared to the US Healthcare industry average (25.1x).


Price to Earnings Ratio vs Fair Ratio

What is CAH'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.

CAH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio46.1x
Fair PE Ratio37.2x

Price-To-Earnings vs Fair Ratio: CAH is expensive based on its Price-To-Earnings Ratio (46.1x) 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 CAH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$104.37
US$112.48
+7.8%
8.1%US$129.00US$92.00n/a15
Jun ’25US$99.27
US$111.86
+12.7%
8.4%US$129.00US$92.00n/a14
May ’25US$102.17
US$112.31
+9.9%
9.4%US$134.00US$88.00n/a16
Apr ’25US$112.06
US$113.31
+1.1%
8.8%US$133.00US$93.00n/a16
Mar ’25US$113.37
US$113.31
-0.06%
8.8%US$133.00US$93.00n/a16
Feb ’25US$105.10
US$109.67
+4.3%
8.8%US$128.00US$93.00n/a15
Jan ’25US$100.80
US$106.50
+5.7%
8.3%US$126.00US$90.00n/a14
Dec ’24US$107.16
US$104.28
-2.7%
10.6%US$126.00US$78.70n/a13
Nov ’24US$93.58
US$95.59
+2.2%
9.2%US$110.00US$78.70n/a13
Oct ’24US$86.82
US$94.90
+9.3%
10.0%US$108.00US$78.00n/a13
Sep ’24US$87.58
US$96.08
+9.7%
8.5%US$108.00US$78.00n/a14
Aug ’24US$91.64
US$91.79
+0.2%
10.4%US$107.00US$67.00n/a14
Jul ’24US$94.57
US$89.61
-5.2%
9.5%US$103.00US$67.00n/a15
Jun ’24US$83.42
US$86.14
+3.3%
8.8%US$97.00US$67.00US$99.2715
May ’24US$82.25
US$84.53
+2.8%
9.1%US$97.00US$67.00US$102.1715
Apr ’24US$75.50
US$83.59
+10.7%
9.0%US$94.00US$67.00US$112.0615
Mar ’24US$75.98
US$84.42
+11.1%
8.7%US$94.00US$67.00US$113.3714
Feb ’24US$75.72
US$83.00
+9.6%
10.0%US$100.00US$67.00US$105.1014
Jan ’24US$76.87
US$79.71
+3.7%
7.5%US$90.00US$67.00US$100.8014
Dec ’23US$79.26
US$79.31
+0.06%
7.6%US$90.00US$67.00US$107.1613
Nov ’23US$75.39
US$69.92
-7.3%
9.0%US$78.00US$56.00US$93.5813
Oct ’23US$66.68
US$68.54
+2.8%
9.5%US$78.00US$56.00US$86.8213
Sep ’23US$71.32
US$67.38
-5.5%
11.7%US$78.00US$52.00US$87.5813
Aug ’23US$60.32
US$58.69
-2.7%
9.0%US$70.00US$51.00US$91.6413
Jul ’23US$53.10
US$59.23
+11.5%
10.5%US$74.00US$51.00US$94.5713
Jun ’23US$55.43
US$59.23
+6.9%
10.5%US$74.00US$51.00US$83.4213

Analyst Forecast: Target price is less than 20% higher than the current share price.


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