Cardinal Health, Inc. (CAH) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+190.6%

$737.51

vs $253.76 price

Levered DCF

$623.70

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

5.1

Safe zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	32.68×	25.93×	28.09×	75.06×	-15.65×	27.32×	-4.14×	10.48×
P/B	-19.45×	-14.56×	-7.45×	-8.34×	-20.57×	9.31×	8.55×	2.25×
P/S	0.22×	0.18×	0.11×	0.12×	0.08×	0.1×	0.1×	0.1×
EV / EBITDA	17.58×	14.8×	12.45×	17.92×	284.93×	15.54×	-7.36×	6.49×
Gross margin	3.8%	3.7%	3.3%	3.4%	3.6%	4.2%	4.5%	4.7%
Operating margin	1.0%	1.0%	0.5%	0.4%	-0.3%	0.3%	-2.7%	1.4%
Net margin	0.7%	0.7%	0.4%	0.2%	-0.5%	0.4%	-2.4%	0.9%
Current ratio	0.88×	0.94×	0.98×	1×	1.08×	1.12×	1.1×	1.07×
Debt / equity	-3.45×	-3.36×	-1.75×	-1.75×	-8.19×	3.75×	3.79×	1.27×
Interest coverage	7.51×	10.58×	24.37×	8.95×	-4.13×	2.62×	-17.22×	7.01×
Dividend yield	0.9%	1.2%	2.1%	2.1%	3.8%	3.4%	3.7%	4.0%
Payout ratio	28.6%	31.6%	58.6%	159.1%	-59.6%	93.8%	-15.4%	42.3%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	-59.5%	-56.1%	-26.5%	-11.2%	132.3%	34.1%	-206.4%	21.5%
Return on invested capital	13.2%	11.4%	8.8%	3.6%	-4.3%	2.7%	-23.4%	9.3%
Return on assets	3.0%	2.9%	1.9%	0.8%	-2.1%	1.4%	-9.1%	3.3%
Free cash flow yield	8.1%	4.6%	13.6%	9.6%	18.8%	12.2%	10.4%	16.8%
Earnings yield	3.1%	3.9%	3.6%	1.3%	-6.4%	3.7%	-24.2%	9.6%
Enterprise value	$61.2B	$46B	$24.4B	$25.8B	$15.7B	$20B	$19.3B	$19.8B
Net debt / EBITDA	1.46×	1.76×	0.24×	0.76×	19.78×	2.57×	-1.53×	1.81×
Cash conversion cycle (days)	-11	-9	-9	-6	-3	-1	-1	-2